Thailand is being urged to restructure its agricultural sector, as the country’s primary farm products can no longer compete in the world market.
Experts say reforms should include controlling the supply of each commodity, creating cultivation zones for each crop, and adding value to farm output.
Zoning restrictions can help to control supplies and improve yield quality to meet demand in niche markets, resulting in higher value and more income to growers of such crops as organic Hom Mali rice and organic vegetables.
Arkhom Termpittayapaisith, secretary-general of the National Economic and Social Development Board, said adding value to farm products would foster sector sustainability.
Prices of local crops such as rice, rubber and sugar now depend on global markets and supply, prompting the government to intervene whenever prices plummet.
This year, agricultural prices dropped by 9.3% year-on-year in the second quarter alone on the slowdown in the world market, hurting local farm incomes.
Thailand now ranks second globally in exports of sugar.
Since most of this commodity is shipped as a primary product, the industry should find ways to increase value such as developing high-quality sugar tailored to particular markets.
Mr Arkhom said Thailand risks losing its status as a major rice exporter as more Asian countries become self-reliant in terms of the crop.
Vietnam has rapidly developed its agricultural sector and can beat Thailand’s rice prices.