Thai farmers are bearing the brunt of soaring fuel and fertilizer prices and shortages stemming from Middle East turmoil, with many suspending farm production altogether due to lack of profitability.
Thailand has long been known as one of the world's leading rice exporters, but rising fuel prices, fertilizer shortages and global supply chain disruptions are putting enormous pressure on the country's agricultural sector.
In Uthai Thani province, rice farmer Rapeerath Thirakarn said that he would normally be using machinery to cut through the mud in his field at this time in the season. This year, however, he and many of his neighbors are leaving every hectare of their land untouched, as planting rice no longer makes financial sense.
"Around 80 percent to 90 percent (of people) in this village have stopped farming rice. This year, the cost of rice production is too high. Farmers cannot cope, especially with the high prices of fuel, fertilizer, pesticides, everything," he said.
For generations, Thailand's rice belt has fed millions and helped feed the world, but now, farmers across the country are making the same painful calculation.
Thailand imports up to 95 percent of its chemical fertilizers, much of it passing through the Gulf, where conflict and instability have disrupted shipping routes through the Strait of Hormuz.
Local fertilizer shops say supplies have dried up. Some say they haven't received stock in months, and what remains is becoming painfully expensive.
"Since the Strait (of Hormuz) was closed, fertilizer prices have increased by approximately 60 percent to 80 percent. The impact on farmers is that they don't have the funds to invest this season, and it increases their costs. So, it affects the decision to cultivate rice," said Sawitri Khasan, a fertilizer shop owner.
For farmers already battling debt, planting this season has become a gamble few can afford to take. That will have a direct impact on the country's economy and people's income, as the the agricultural sector accounts for around 10 percent of Thailand's GDP and employs roughly one third of the workforce.
But as the country enters its major rice crop season, responsible for up to 80 percent of annual output, economists warn that the consequences could ripple far beyond these farms if more and more growers abandon planting.
"The short-term shock is insufficient food for domestic consumption. Rice prices will go up, everything will get more expensive. We will face a very serious food security crisis if this continues for more than six months. It's like a bomb; when it detonates, it will completely transform Thailand," said Vorapat Vachirayagorn, associate professor at Thammasat University's Department of Plant Production Technology.
Thai farmers reel from fertilizer, fuel price hikes
Thai farmers reel from fertilizer, fuel price hikes
