Thailand's agricultural sector faces increasing pressure as rice farmers rally for government support amid growing concerns about low rice prices and inflation. Recent protests have amplified calls for action, leading to new government measures aimed at providing financial relief to struggling farmers.
On February 26, 2023, Pichai Naripthaphan, the Minister of Commerce, addressed the rice farmers gathered at the Ministry of Commerce. He confirmed the government's commitment to addressing the hardships faced by agricultural workers, stating, "We give utmost importance to the challenges you face and are actively implementing measures to support you." These measures have been carefully outlined to provide immediate assistance to farmers who have experienced plummeting rice prices.
The new initiatives include three main support mechanisms aimed at increasing rice prices for farmers. Firstly, the government plans to provide farmers with additional compensation of 1,000-1,500 THB per ton. Farmers who store rice in their own barns will receive 1,500 THB per ton, whereas those who deposit their rice with cooperatives will receive 1,000 THB per ton. These measures aim to stabilize rice prices and secure continued production.
During the announcement, Naripthaphan emphasized the urgency of the situation, acknowledging the farmers' frustrations over their financial struggles. He indicated, "The price of rice with 15% moisture currently stands at 8,500 THB per ton, and our measures aim to increase this figure significantly, ensuring farmers can earn at least 9,500-10,000 THB." The upcoming discussions scheduled for February 26, 2023, with the National Rice Policy Committee will decide on these proposed measures.
Further, the government is also exploring additional support measures, such as compensatory interest rates for rice mills. These endeavors aim to boost liquidity within the rice market and encourage higher purchasing rates, which would benefit farmers as well. Vithakorn Maneetr, the Director-General of the Department of Internal Trade, explained, "This initiative marks the first time the government is implementing concrete measures to assist summer rice production, addressing the unique challenges faced during this period."
Despite the optimism, the farmers expressed dissatisfaction with the existing plans, arguing for more substantial protections. Farmers are particularly concerned about the continuation of low rice prices, which they hope can be addressed through direct price guarantees. They demand compensation of 11,000 THB per ton for rice according to specified moisture levels. Should their requests be met with indifference, they have signaled intentions to escalate their protests, threatening actions such as distributing rice at the airport and staging demonstrations at government facilities.
At the protest, farmers voiced their grievances clearly, asserting their need for immediate interventions from the government. The gathering highlighted widespread discontent over insufficient support measures, emphasizing the precarious state of agriculture as inflation continues to impact cereals significantly. The urgency of the situation has increased as inflation affects not only farm incomes but also the cost of living for the Thai populace.
Counterarguments from the government suggest limitations due to earlier resolutions preventing direct subsidies to farmers. Officials stress the importance of seeking alternative solutions within the previously established policy frameworks. Naripthaphan reiterated, "We have to adhere strictly to resolutions set by the Cabinet and the National Rice Policy Committee on November 21, 2022, which mandated clear restrictions on cash subsidies. We must find solutions within those guidelines."
Looking forward, the government has also committed to exploring international partnerships for rice exports, with discussions planned with countries like China and South Africa to secure markets for Thai rice. This effort aims not only to stabilize local rice prices but also to strengthen Thailand's agricultural trade relationships. Meetings late March with international counterparties will finalize export agreements.
Meanwhile, the farmers continue to organize and express their dissatisfaction through peaceful protests, hoping to unite under one voice for immediate action. They are resolved to advocate for systemic changes to safeguard their livelihoods, emphasizing the intrinsic connection between rice pricing, food security, and the well-being of rural communities across the nation.
With inflation rates soaring and global market pressures mounting, the Thai government faces increasing demands for transparency and effectiveness in its agricultural policies. Farmers remain vigilant, awaiting promised measures to alleviate their burdens, demonstrating resilience amid adversity as they push for constructive government dialogue.