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8 Jan 2021


Brighter outlook for Thai agriculture in 2021 boosted by favorable weather conditions, but prices may be at risk (Current Issue No.3178)


​KResearch assessed that the  Thai agriculture in 2021 is set to have brighter outlook, with farm income projected to increase in the range of 1.0 to 1.5 percent YoY. This growth is attributable to an expected rise in farm output by 2.0 to 2.5 percent YoY due to higher levels of rainfall influenced by the La Niña phenomenon that would continue to benefit farming up until May 2021. Meanwhile, prices of agricultural produce may decrease by 0.5 to 1.0 percent YoY, having to contend with risks from increasingly fierce competition and the strengthening Baht. Close attention must also be paid to the severity of the new wave of domestic COVID-19 outbreak, and that of the world at large, both of which could put further pressure on prices of Thai farm products. Thus, the farmers' income guarantee program (phase 2) is an appropriate and timely measure from the government during a period where the overall prices of agricultural produce are following a downward trend, since it will help to alleviate the issue of low farm income to a certain extent. ​