In response to decreasing rice prices, the Thai government is exploring crop diversification strategies, specifically encouraging farmers to cultivate bananas. Commerce Minister Pichai Naripthaphan highlighted the potential of bananas as an alternative crop, citing their high yield and strong demand in international markets, particularly Japan.
Thailand's current banana production stands at approximately 8,000 tons annually, with export potential of around 2,000 tons. Japan's banana demand, estimated at one million tons a year, presents an opportunity for Thai farmers to enhance their income through this diversification.
The proposal, however, encountered skepticism in parliament. People's Party MP Narongdech Ularnkul questioned the government's approach to addressing the falling rice prices and advised Minister Pichai to engage with the Agriculture and Cooperatives Ministry before farmers transition to banana cultivation.
Amid these discussions, Narongdech raised concerns regarding leadership within the National Rice Policy and Management Committee, particularly the shift from a prime minister-led position to being headed by Finance Minister Pichai Chunhavajira.
To assist rice farmers, Pichai outlined plans to sell rice stockpiles through agreements with African countries and China. Negotiations with India and Vietnam are anticipated to develop strategies for rice price stabilization.
A proposal to support rice prices by offering farmers an additional 1,000 baht (approximately $28) per ton for off-season rice is pending Cabinet approval. Combined with current market rates, farmers could receive around 9,500 baht (approximately $267) per ton.
This diversification initiative highlights the challenge of balancing market interventions with long-term agricultural sustainability, requiring effective collaboration across government agencies and addressing farmers' immediate concerns.
Source: ASEAN Now