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8 May 2021

Agriculture

Agricultural Product Prices Likely be Pressured by Supply Glut and Sluggish Demand from COVID-19 during remainder of 2021 (Current Issue No.3220)

คะแนนเฉลี่ย
  • ​KResearch assesses that prices of most Thai agricultural products, including rice, rubber, cassava, oil palm and sugarcane, will decline during the remainder of 2021 due to the double shock from both a supply glut resulting from favorable climate conditions for crop cultivation and weakening domestic demand caused by the impact of COVID-19.  Given this, the Agricultural Price Index may increase at a slower rate of 0.3-1.3 percent YoY and agricultural output will likely grow only 1.1-2.1 percent. Farm income, therefore, is projected to increase 1.9-2.9 percent during the rest of 2021.
  • In spite of this, we at KResearch are of the view that the overall agricultural product prices will continue to increase during 2021, albeit at a slower rate than those reported in 2020 due to the high base. Agricultural output is projected to grow, as well. Anticipated increases in rubber, cassava, oil palm and sugarcane prices will help boost income for such farmers. However, rice growers are expected to see a slump in rice prices. They, therefore, may be the first to receive urgent assistance from the government.


Agriculture