26/12/2012 (The Nation) - The Cabinet yesterday approved a Bt1.3-billion bail-out for palm-oil farmers and also agreed to import soybeans and animal feed under an Asean trade protocol.

The Bt1.3 billion will be used to provide subsidies to palm-oil refineries and biodiesel manufacturers that need crude palm oil. This will help boost the price of raw palm oil to Bt25 per kilogram for the first 50,000 tonnes, while oil-extracting factories can buy palm fruit for between Bt4 and Bt4.35 per kilogram.

The new rates go into effect retroactively from December 20.

The Cabinet has also given the nod to a scheme that will allow tariff-free import of soybeans for an unlimited period under the government's quota. The tariff outside the government's quota for the import of soybeans is 80 per cent.

The Cabinet also approved a Commerce Ministry proposal allowing tariff-free import of corn for animal feed under an Asean free-trade deal next year. General importers can enjoy this privilege from January 1 to July 31, while the Public Warehouse Organisation can do so throughout 2013.