InfoQuest, (April 13, 2019) -- Mr. Somkiat Kimawa, manager assistant of Bank for Agriculture and Agricultural Cooperatives (BAAC), revealed the assessment results of 11 government policy projects carried out in 2016-2018 in terms of economy, society, and environment.
The assessment found that huge economic achievements had been delivered. Judging from the overall picture, since farmers, agricultural cooperatives, and agricultural SMEs joined these projects, their income increased 26.49 percent year-on-year (farmers' annual average income increased by 5,128 baht, that of each agricultural cooperative increased by 15.72 million baht, and that of each agricultural SME increased 460 thousand baht). The output increased 21.83 percent year-on-year, with the output quality increasing by 2.86 percent. Vocational skills were also enhanced by 9.16 percent and the production costs were lowered by 5.07 percent.
In addition, the marketing and distribution channels increased by 1.23 percent, the capacity of market negotiation grew by 2.94 percent, the source of raw materials increased by 2.86 percent, and employment increased by 2.13 percent.
These projects also generated social benefits. As a whole, since farmers, agricultural cooperatives, and agricultural SMEs joined these projects, they gained 23.71 percent more opportunities in accessing government and financial services, and 22.24 percent more in accessing financial knowledge. In terms of environmental impacts, health and sanitary conditions were improved by 4.09 percent, together with more environmentally friendly mode of natural resources utilization, production and consumption, and more opportunities in utilizing biodiversity.
By assessing the sustainability and eco-efficiency of these projects with input-output table, it was found that the various BAAC projects had generated a social return on investment (SROI) ratio ranging from 1.48 to 1.85. The total loans of 2017 fiscal year exceeded 257.727 billion baht, and the total revenue stood at 380.27 billion baht. Most loans offered by BAAC went to agriculture and agriculture products processing sectors, such as sugarcane and corn planting, farmland, and domestic enterprises in agriculture and agriculture products processing sectors, such as producers of fertilizer and pesticide. The SROI ratio was 1.48, namely each baht of bank loan generated 1.48 baht of social benefits.
As for social progress, in 2013-2015, 518 million baht was invested in community development, which generated total benefits of 764 million baht. These projects have applied the economic philosophy of self-sufficiency to communities, established financial discipline, and integrated professional groups, financial groups, and community network to create income. The SROI ratio was 1.48, namely each baht of community development investment generated 1.48 baht of social benefits.
As for environmental wellbeing, in 2013-2015, 762 million baht was invested in environmental improvement, which generated total benefits of 1.408 billion baht. Relevant benefits: economic income generated by tree planting, and improved awareness of agricultural water source, and the protection of natural resources and environment. The SROI ratio was 1.85, namely each baht of environmental improvement investment generated 1.85 baht of social benefits.
"BAAC has launched the following important projects in sustainability and eco-efficiency: tree bank project, building debris dams for communities across the country, "Financial Literacy" program, and the demonstration project of enhancing community competitiveness guided by the economic philosophy of self-sufficiency and happy communities," added Mr. Somkiat.
The Research and Innovation Development Center of BAAC, Rural and Social Management Institute, and the Foundation for Thailand Rural Reconstruction Movement Under the Royal Patronage worked together to assess the 11 projects during 2016-2018, involving 1,223 samples of farmers, agricultural cooperatives, and agricultural SMEs.
Source: InfoQuest, by Tanawat Suayaem/ Rachada, translated by Xinhua Silk Road
Notice: No person, organization and/or company shall disseminate or broadcast the above article on Xinhua Silk Road website without prior permission by Xinhua Silk Road.
A single purchase
