The “crisis within a crisis” stemming from the Middle East conflict, coupled with energy shortages, geopolitical issues, and global trade pressures, is putting multifaceted stress on the Thai economy. In particular, transportation costs, the cost of living, and agricultural exports face significant volatility. This has forced the government to urgently adopt a proactive economic strategy, alongside restructuring the economy to adapt to the rapidly changing global context.
The Ministry of Commerce and the Ministry of Agriculture and Cooperatives should join forces to implement comprehensive short-term and long-term measures to address agricultural commodity issues, covering the entire supply chain from upstream to consumer. This includes implementing a “market-leading purchasing” strategy to absorb 1 million tons of rice and stabilize farm-gate prices, coupled with a nationwide project to reduce the cost of living through mobile vendors. In the long term, they should accelerate the use of AI and technology to upgrade farmers into producers of “high-value agricultural products,” aiming to stabilize farmers’ incomes and strengthen the grassroots economy sustainably.
Deputy Prime Minister and Minister of Commerce , Supajee Suthamphan, revealed that the “crisis within a crisis” encompassing energy, geopolitics, and global trade has had a ripple effect on transportation costs, the cost of living, and Thai exports. Therefore, proactive economic policy must be implemented while adapting to the rapidly changing context of global trading partners.
The Ministry of Commerce has outlined a two-phase policy approach: a short-term focus on addressing immediate problems, particularly “agricultural product prices and the cost of living,” while the long-term plan aims to restructure the economy through five key policies. The core focus is on “maintaining stability and increasing the value of agricultural products” to create stable income for farmers.
“Buying ahead of the market” to prop up rice prices.
As an urgent measure, the Ministry of Commerce is employing a “market-led purchasing” mechanism to support agricultural product prices, particularly rice. They are preparing to open purchasing points in 28 provinces, aiming to absorb an initial 1 million tons of paddy rice. The price will be set no more than 300 baht per ton above the market price to prevent farm-gate prices from falling. Simultaneously, the ministry will connect the produce to government agencies such as the military, the Department of Corrections, the Department of Juvenile Observation and Protection, and state enterprises. Furthermore, they will produce “affordable bagged rice” to alleviate the burden of living costs for the public.
Upgrading the production of “high-value rice”
Structurally, we will accelerate the upgrading of farmers to produce “high-value rice” to reduce reliance on price competition. Farmers will be divided into three groups based on their potential, targeting 200 groups: a high-potential group receiving support for market linkages both domestically and internationally; a group ready to produce but lacking markets, receiving support in terms of equipment and trade channels; and a group needing development, strengthening production and processing capabilities and creating distribution channels.
At the same time, efforts are being accelerated to develop “rice seeds” that align with market demands and local conditions in order to increase yield and value, as well as promoting innovative and high-quality rice varieties to mitigate pressure from price wars in the global market.
Opening new markets – reducing reliance on the Middle East.
In terms of marketing, the company is ready to expand export markets for agricultural products, especially rice, to diversify risk from existing markets affected by the conflict in the Middle East. This includes targeting Asia, specifically China, Malaysia, and Singapore, as alternative markets; Africa, maintaining the market base for parboiled and white rice, particularly in South Africa; and Europe, the United States, and Australia, promoting healthy rice, organic rice, and premium rice.
Furthermore, there are plans to include agricultural products as part of government-to-government (G2G) trade negotiations, possibly with partial payment terms in the form of Thai agricultural products, in order to expand markets and create new demand.
Using AI to manage agricultural products.
Another important tool is the use of technology to manage agricultural products. In the short term, a system is being used to forecast rice production 2-8 weeks in advance, monitor purchase prices at the district level, and assess the production capacity of rice mills. In the medium term, AI will be used to analyze and identify export markets for “high-value rice,” with a pilot program expected to begin in June 2026 before expanding to other major agricultural products such as oil palm, cassava, animal feed corn, and fruits in the long term.
Connecting agricultural products to consumers.
Simultaneously, we will continue the “Thai Helps Thai” project , offering discounted prices on over 3,000 agricultural and consumer products nationwide through various channels, including modern trade, local shops, Thailand Post, and 3,800 mobile vendor trucks (“phumpuang” trucks) to reach remote areas. This measure not only helps reduce the cost of living but also provides a direct channel for agricultural products from producers to consumers, thereby improving farmers’ incomes.
Suriya vows to work proactively.
Mr. Suriya Jungrungreangkit, Minister of Agriculture and Cooperatives, revealed that after assuming his duties in early April 2026, he instructed senior executives to accelerate proactive work processes, reduce unnecessary procedures, and leverage digital technology to increase the efficiency of services to farmers, under the concept of “Agricultural Innovation for the Sustainability of Thai Farmers.”
The core of the policy lies in upgrading the integrated management of agricultural products, from production and processing to marketing. This involves utilizing Big Data and AI for “precision agriculture” to reduce costs, increase productivity, and improve product quality to meet market demands. This is coupled with promoting “market-led production,” connecting data throughout the supply chain, from upstream to downstream, to address the persistent structural problems of oversupply and low prices in Thai agriculture.
In terms of income, the Ministry of Agriculture aims to increase the value of agricultural products through processing and new product development to reduce reliance on raw material sales. It also accelerates the development of farmers’ capabilities through reskilling and upskilling, and promotes the formation of cooperatives and community enterprises to increase their bargaining power in the market.
Urgent action is needed to address the challenges of “fertilizer, water, and climate.”
As urgent measures, the Ministry of Agriculture has established a War Room to closely monitor the situation of agricultural products and production factors. At the same time, it is accelerating the management of water resources across the entire system to cope with drought, floods, and climate fluctuations, which are significant risks to agricultural production.
Creating Smart Farmers
In the marketing dimension, the Ministry of Agriculture prioritizes balancing “exports” and “domestic consumption” to maintain price stability, especially during periods of global market uncertainty stemming from the situation in the Middle East and rising logistics costs. Simultaneously, it aims to promote agricultural products in new markets and upgrade product standards to meet increasingly stringent global trade regulations.
Another important goal is to create a new generation of “Smart Farmers” who can use technology and data to plan production, as well as solve PM 2.5 problems by transforming agricultural waste into energy and promoting carbon credit systems to generate supplementary income for farmers.
Warning: Thai agriculture must change.
However, the agricultural sector remains a crucial engine of the grassroots economy, but it is facing pressure from several sides, including the global economy, new trade regulations, and climate change.
Therefore, this restructuring of the agricultural sector will not be just a short-term solution, but a “game changer” towards smart and precision agriculture, in order to improve the income and quality of life of Thai farmers in the long term.