Thailand's Economy: Agriculture as a Macro Issue Requires Productivity Focus Over Price Support

Key summary

Prime Minister Srettha Thavisin argues that Thailand's agricultural sector must be treated as a macroeconomic issue rather than just a welfare program for farmers. He notes that while many people work in agriculture, the sector contributes less than 10% of GDP, indicating low per capita income and purchasing power. The report highlights that farmer net income depends on yield, cost management, quality, and loss reduction, not just market prices. Specific examples include red onion pricing variations in Sisaket (9-10 baht/kg fresh vs. 25-30 baht/kg for premium bundled) and Yasothon (4-5 baht/kg fresh vs. 20-25 baht/kg for premium bundled) in January 2026, illustrating how post-harvest handling affects value. The article emphasizes the need to improve productivity per rai, manage rising labor costs due to an aging workforce, and ensure consistent quality for long-term contracts with buyers.