Revived agriculture sector seen as key for Thailand

Thailand needs to develop pandemic-resilient policies that will revive its agriculture sector, which has been badly hit by the COVID-19 outbreak, analysts said.

The Asian Development Bank has forecast a 1 percent contraction this year in Thailand’s agriculture sector, which has been hurt by the nation’s measures over the past few months to contain the spread of the novel coronavirus through closing borders and enforcing lockdown measures. Such steps have dampened production, disrupted the flow of exports and reduced farmers’ incomes.

The Thai government has implemented stopgap measures to help the ailing sector. The Bank for Agriculture

and Agricultural Cooperatives, for example, has begun transferring 5,000 baht ($160) cash handouts to 10 million farmer households. In addition, the Center for COVID-19 Situation Administration has decided to allow the entry of Chinese traders — among the biggest buyers of Thai farm products — to buy Thai fruits. But the CCSA said these traders will still be subject to screening and the 14-day mandatory quarantine, according to a report by Xinhua News Agency.

Analysts said that while these measures are helping the farmers, it is also time to think of long-term measures that will make the sector more resilient to future challenges — such as climate change or another pandemic.

“Climate change impacts like droughts and floods are becoming more frequent and intense, leading to unsustainability of agriculture,” said Srinivasan Ancha, the Asian Development Bank’s principal climate change specialist for Southeast Asia. “Post-pandemic recovery packages should give preferential support to climate-smart agriculture and one-health approaches, which recognize strong interdependencies among plant health, animal health, environmental health and human health.”

Ancha emphasized the importance of “pandemic-resilient” agriculture. He said initiatives such as village revolving funds and payments for ecosystem services can be used to promote more environmentally friendly farming practices.

Ancha also called for “healthier, safer, and more nutritious diets that rely mainly on local and organically grown products”. This, he said, will reduce wastage along the agri-food value chain.

Suriyan Vichitlekarn, the Bangkok-based deputy cluster coordinator for agriculture and food with the German Agency for International Cooperation, said the disruption in the global supply chain has shown the need to develop Thailand’s domestic food market.

“While Thailand can still enjoy the benefits of international trading, it should not forget the domestic market,” Suriyan said.

Agriculture accounts for roughly 8 percent of Thailand’s GDP. It supports millions of households and brings in over $33 billion in export revenues. Thailand’s food exports account for 2.5 percent of the global market, according to the ADB.

Ancha at the ADB said stringent inspection procedures aimed at stemming the number of infections are affecting the exports of Thai farm products. But he added that steady demand from China is providing a lifeline to Thailand, whose vegetables, fruits, cassava root, tuna and rubber remain in demand among Chinese consumers.

A report by Thailand’s National Economic and Social Development Council said that while overall merchandise exports fell 15.9 percent in the second quarter, farm exports rose, thanks to increased Chinese demand for durian and mangosteens.