Farmers Demand Action from Three Ministers to Address Low Rice Prices and Soaring Production Costs

Bangkok: The Thai Farmers and Agriculturists Association is urging three ministries - Commerce, Agriculture, and Energy - to fulfill their promises to urgently address the issues of low rice prices, soaring production costs, and outstanding subsidies. They are preparing to propose to the National Rice Policy Council (NRPC) a compensation plan of 2,000 baht per rai to help farmers weather the rising costs of the dry-season rice crop, which contrasts sharply with the low rice prices set by the NRPC. They point out that while the government has implemented various measures to support fruit production, the rice problem remains unresolved.

According to Thai News Agency, Mr. Pramote Charoensilp, President of the Thai Farmers and Agriculturists Association, revealed that the association intends to urge Deputy Prime Minister and Minister of Commerce, Ms. Supajee Suthamphan, Minister of Agriculture and Cooperatives, Mr. Suriya Jungrungruangkit, and Minister of Energy, Mr. Ekanat Promphan, to urgently address the hardships faced by farmers. Currently, farmers nationwide are facing rising production costs, including fertilizers, agricultural chemicals, fuel, and land rental fees. Even though some areas have already started replanting, many measures remain unclear. Regarding the demands of the Ministry of Commerce, the association requests that they urgently ensure fair pricing for paddy rice and a fair rice pricing structure, coupled with controlling the prices of fertilizers and agricultural chemicals, as production costs continue to rise while rice prices during the recent harvest were low, with farmers in many areas selling rice for only 4,000-5,0 00 baht per ton.

Mr. Pramote stated that although rice prices have recently started to rise to around 9,000-10,000 baht per ton, most of the produce has already left the hands of farmers. Many farmers need to quickly sell their produce to pay off debts and production costs, resulting in middlemen benefiting more than farmers. 'Farmers invest heavily but sell at low prices. Today, rice prices have increased, but the rice is no longer in the hands of the farmers. The government has implemented various measures to support fruit production, but the rice problem has not been seriously addressed,' Mr. Pramote said.

Regarding the demands of the Ministry of Agriculture and Cooperatives, the association requests that they expedite the disbursement of funds for the project supporting management costs and improving the quality of rice produce for the 2025 crop year, at a rate of 1,000 baht per rai, up to a maximum of 10 rai. Some farmers have not yet received the money because the number of registered farmers exceeded the original budget limit. The association also proposes that the government provide an additional support of 2,000 baht per rai, up to a maximum of 20 rai per household, to compensate for the impact of higher production costs and low yields in the recently harvested dry-season rice crop.

Furthermore, it was proposed to accelerate the development of water resources, irrigation systems, and rice seeds, and to support the reduction of fertilizer costs by offering discount coupons of 200 baht per bag of fertilizer, up to a maximum of 20 bags per household, so that farmers can choose fertilizer formulas suitable for their planting areas.

While the association's demands to the Ministry of Energy included requests to regulate the price of diesel fuel for agricultural use and support solar power systems with water pumps to reduce farmers' long-term energy costs, Mr. Pramote stated that the farmers' biggest concern right now is the continuously rising production costs. Urea fertilizer has increased from 900 baht to 1,400-1,500 baht in some areas, and formulated fertilizer has risen from 800 baht to 1,100 baht per sack. Meanwhile, some chemicals have increased from 200-300 baht to 400-500 baht. This has left many farmers facing liquidity problems, and some lack the funds to invest in the new planting season. "Today, many agencies are only talking but haven't been able to do anything serious, even though the new production season has already begun," Mr. Pramote said.

Mr. Pramote also stated that the most worrying issue is that many farmers own "rented land," and even when they don't farm, they still have to bear the burden of land rental fees, while costs continue to rise. If the government continues to delay solving the problem, it may cause some farmers to reduce their cultivated area, decrease the use of production inputs, or stop farming altogether. This would affect rice production volume, exports, and the country's long-term food security. He added that all these issues will be presented at the National Rice Policy and Management Committee meeting on June 11th for urgent consideration and assistance for farmers. "Rice is the country's staple food; we eat it every day. If farmers cannot survive, ultimately the entire food system will be affected," Mr. Pramote said.