Enhancing the access of small-scale fishers to financial services: The case of Ban Hat Sai Khao Village in Ranong Province, Thailand

Abstract

Based on the Royal Ordinance on Fisheries B.E. 2558 (2015) of Thailand, artisanal (small-scale) marine capture fishery refers to a fishing operation in the coastal zone within 3 nm from the shore using fishing vessels less than 10 GT while commercial-scale marine capture fishery uses fishing vessels from 10 GT fitted with engines. To support small-scale and commercial-scale fishers, the government established several financial assistance policies and programs. In 2020, the Loan Project was launched by the government to enhance the liquidity of the small-scale and commercial fishers affected by the measures to combat IUU fishing by providing funds for the improvement of fishing vessels and gear. The loan was provided through the Bank for Agriculture and Agricultural Cooperatives (BAAC) to the owners of small-scale and commercial scale fishing vessels of less than 60 GT with a maximum loan amount of THB 5 million (USD 147,000) per person with collateral including fishing vessel, land/land with building, or joint liability group as a guarantee. The loan has to be paid back within seven years with an interest rate of 7 % wherein 4 % will be paid by fishers/borrowers and 3% will be supported by the government. During the COVID-19 pandemic, the small-scale fishers in Thailand obtained financial support from the government to sustain their livelihood and liquidity. To mitigate the impacts of the COVID-19 pandemic, the Ministry of Agriculture and Cooperatives provided financial assistance in the amount of THB 5,000 (USD 147) per month from April to June 2020 for the registered small-scale fishers and farmers. In addition, the insurance for small-scale fishers in Thailand is composed of two types, namely: 1) insurance policy in capture fisheries for the fishers who own a fishing vessel of less than 10 GT registered with the Marine Department and 2) voluntary fishers insurance policy (micro-insurance) covering small-scale and commercial fishing vessels. Both types of insurance policies aid fishers in alleviating the damage to fishing vessels and injury or death of fishers from natural disasters. However, the fishers lack the motivation to apply for micro-insurance because they could receive aid from the government and relevant agencies when needed (Nartaya, 2022).