Thailand Urges Banana Boom to Fight Rice Crisis
Bangkok—Facing a deepening rice market crisis, the Thai government is encouraging farmers to diversify their crops, focusing on bananas. Commerce Minister Pichai Naripthaphan announced this initiative on Thursday, citing the fruit’s high yield and strong international demand. This follows a downward spiral in rice prices, squeezing farmers' incomes and prompting calls for government intervention.
Responding to a parliamentary inquiry from People’s Party (PP) MP Narongdech Ularnkul about the rice price slump, Minister Naripthaphan attributed the decline to market oversupply. He proposed bananas as a lucrative alternative, highlighting significant demand from countries like Japan, estimated to import one million tonnes annually. Thailand currently produces approximately 8,000 tonnes of bananas per year, exporting around 2,000 tonnes. This disparity, Minister Naripthaphan argued, presents a substantial opportunity for Thai farmers to increase earnings.
However, MP Ularnkul expressed skepticism, questioning the Commerce Minister’s decision to promote banana cultivation without consulting the Agriculture and Cooperatives Ministry. He doubted the government’s commitment to addressing the plummeting rice prices, criticizing the proposal as a superficial solution. He also questioned appointing Finance Minister Pichai Chunhavajira to head the National Rice Policy and Management Committee—a position traditionally held by the Prime Minister—rhetorically asking, “Doesn’t our Generation-Y prime minister care about farmers?” This highlights the political undercurrents surrounding the agricultural crisis and a perceived disconnect between the government and the farming community.
Minister Naripthaphan outlined additional measures to stabilize the rice market, including releasing government rice stockpiles through sales agreements with several African nations and China. Further diplomatic efforts are planned with key rice-producing countries like India and Vietnam to explore collaborative price-boosting strategies. To offer immediate relief, a proposal for a 1,000-baht-per-tonne supplementary payment for off-season rice has been drafted and will be presented to the cabinet next week. According to the Internal Trade Department, current market prices leave farmers with approximately 9,500 baht per tonne.
The government’s banana initiative offers a potential diversification strategy for Thai farmers struggling with volatile rice prices. However, MP Ularnkul’s skepticism underscores the need for a comprehensive and coordinated approach involving all relevant ministries to address underlying agricultural issues. The initiative’s success, and the broader government strategy to stabilize rice prices, depends on effective implementation and ongoing dialogue with the farming community. The coming weeks will be crucial in determining the effectiveness of these measures and their impact on Thai rice farmers' livelihoods.
