(27 May 2013) At BAAC Hall, 2nd Floor, BAAC Headquarters, Bang Khen, Bangkok, Mr. Tanusak Lekuthai, Deputy Minister of Finance and BAAC Chairman, presided over the signing ceremony of a memorandum of understanding between the Bank for Agriculture and Agricultural Co-Operative (BAAC) and a number of public and private sector organizations, to procure 400,000 tons of high-quality fertilizers for farmers at reasonable prices. The MoU signing ceremony there were representatives from Mr. Luck Wajananawat; President of BAAC,  Mr. Thanoo Hanyoo; Chairman of the BAAC's Agricultural Marketing Co-Operatives Limited,  Mr. Pramote Nonthakotethe; Chairman of Thai Agri Business Co., Ltd. (TABCO), and Mr. Taweesak Suthin; Chairman of the Thai Fertilizer Producer Trade Association.

Luck, BAAC President, said the government has assigned BAAC to operate the farmers’ credit card project to facilitate them in purchasing inputs. The project started since 1 July 2012, which resulted in the current BAAC approved over 2.66 million credit cards for farmers. The credit cards were used to purchase inputs totaling 4,879 million baht, the survey data showed that farmers use credit cards to buy fertilizer representing up to 75 percent of the value of inputs purchased via credit card.

In order to reduce the production costs of farmers and alleviate the suffering of the fertilizer prices which are likely to rise every year, BAAC with the BAAC's Agricultural Marketing Co-Operatives Limited, Thai Agri Business Co., Ltd. and Thai Fertilizer Producer Trade Association including 25 company lunched the Quality Fertilizer project supply 400,000 tons of fertilizer at fair price to farmers credit card holder. The project can help reduce the cost of compensation in the form of interest on loans to farmers who use the card for four months. Farmers will benefit 2.33 percent of fertilizer value or about 350 baht per ton.

The project will run through the BAAC's Agricultural Marketing Co-Operatives Limited in 77 provinces across the country. By the year 2013 the Globe Brand fertilizer, compound fertilizer and Bulk Blending fertilizer will be supplied of 400,000 tons and will increase to one million tons within five years or about 20 percent of the total amount of 5 million tons of fertilizer used in the country, about 5 million tons of fertilizer, which farmers can buy fertilizer and pay using farmers credit cards at BAAC's Agricultural Marketing Co-Operatives Limited, or its agents in every province, including other community stores joining the project.

Luck also said BAAC has signed MOU with Department of Agriculture for controlling quality of fertilizer and improving stores that join the project to be accredited by Q-Shop in all processes. This ensures that farmers will receive good quality fertilizer at a fair price or equivalent value to market. In addition farmers will get the convenience of receiving fertilizer purchase as the BAAC's Agricultural Marketing Co-Operatives Limited would transport the fertilizer from the manufacturer directly to the community. The farmers also get lower interest loan rate for a period of four months at interest free from the fertilizer project and one month interest free from credit card project totaling of five months. The community will be developed as a collection point and network of stores of AMC  to facilitate farmers which will lead to a sustainable development of community in the future.