Connect with us

Weather

Forecast drought will weaken the Thai economy

Tanutam Thawan

Published

 on 

Thailand suffers calamities at both ends of the annual weather spectrum – both drought and flood. But as the demands on agriculture grow, with a growing population and the rise of tourists and development, the effects of these two extremes are becoming more apparent.

Which leads us to this year’s outlook of lower rains which is exposing the poor management of the Kingdom’s water resources. Greater development and growing population bases hasn’t been met with more or larger water catchments.

So Thai farmers are expected to face a tough 2019 as forecasters say the drought will be more acute than usual, lowering the water levels in reservoirs in the central and northeastern provinces especially.

Int eh south, Phuket, Thailand’s largest island and surrounded by water, has an acute water shortage as of Songkran and, without adequate monsoonal rain between now and November, will be facing a water crisis if it has to rely on its own island resources.

The Director General of Department of Agricultural Extension Samran Saraban says the drought this year is exacerbated by El-Nino weather cycle which causes temperature to rise 1-2 degrees higher than normal and cause the water levels in major reservoirs to drop to worrisome level. Higher temperatures mean more evaporation and more usage of reserves.

The Thai PM Prayut Chan-o-cha has called for farmers not to grow off-season rice as drought is predicted to spread into northeastern and eastern regions. That there will likely be a new administration coping with political instability will not help leaders focus on the country’s looming water shortage.

The long dry season will lower certain farm outputs, pushing up their prices. However, an overall farm income is set to decline because the drought will leave other negative affects to farmers who are also the consumers as well. This will affect the purchasing power of farm households, which account for one-third of Thais.

Etc, etc, etc.

Economists estimated the damage from the drought on the economy this year could be high. Kasikorn Research Center estimate the drought could cost at least 15.3 billion baht. Whilst Anusorn Tamajai, Dean of Economics Faculty, Rangsit University, estimates the drought to cost even more – 20-30 billion baht -because it would affect the outputs of off-season rice, sugarcane and tapioca.

“It will dampen the purchasing power of farmers in the second quarter.”

Siam Commercial Bank’s Economic Intelligence chief Yanyong Thaicharoen said that the lackluster farm income can slash the growth rate of domestic consumption this year to 3.5% versus 4.6% growth last year, in addition to other factors, namely, high household debt and slower demand for durable goods.

Spending power from farmers, according to SCB, is crucial to sustain the growth of the economy. However, the grassroots economy is bracing for negative outlook this year.

There will be intense pressure on this season’s management of Thailand’s valuable water resources, through the remaining hot season and as the catchments gather water during the monsoon.

Forecast drought will weaken the Thai economy | News by Thaiger

SOURCES: Thai PBS | The Thaiger | Wikipedia

 

Get more from The Thaiger

📱 Download our app on Android or iOS
👋 Have your say on our Thailand forums
🔔 Subscribe to our daily email newsletter
📺 Subscribe / Join YouTube for daily shows
👍 Like/Follow us on Facebook
🐦 FOLLOW us on Twitter
📷 FOLLOW us on Instagram

image

Join the conversation and have your say on Thailand news published on The Thaiger.

Thaiger Talk is our new Thaiger Community where you can join the discussion on everything happening in Thailand right now.

Please note that articles are not posted to the forum instantly and can take up to 20 min before being visible. Click for more information and the Thaiger Talk Guidelines.

Click to comment

You must be logged in to post a comment Login

Leave a Reply

If you have story ideas, a restaurant to review, an event to cover or an issue to discuss, contact The Thaiger editorial staff.

Follow Thaiger by email:

Coronavirus (Covid-19)37 mins ago

Thailand reduces quarantine to 7 days for fully vaccinated arrivals from October

World1 hour ago

Australian official suggests borders may re-open by Christmas

Thailand1 hour ago

Gilligan’s Island, Farangs, Grammar and Onlyfans | Thaiger Bites | Ep. 26

Welcome back to Thailand!

Thaiger is getting behind local businesses for the restart of tourism in Thailand - up to 50% discounts across all advertising packages!

Guides1 hour ago

Travel hacks for a stress-free holiday in Thailand

Thailand1 hour ago

Consumer complaints hotline targets rip-off shopkeepers

Thailand2 hours ago

Phuket Car rental business says gang rented cars and then sold them off

image
Join the conversation on the Thaiger Talk forums today!
Guides2 hours ago

A guide to Doi Inthanon National Park

Bangkok2 hours ago

Curfew shortened, Bangkok spas, gyms, cinemas can re-open from October

Tourism2 hours ago

TAT pushes for Indonesia, Malaysia to be added to approved list for Phuket sandbox

World3 hours ago

Powerful earthquake strikes near the Phillippines main island

Guides3 hours ago

Top business and investment opportunities in Thailand

Thailand3 hours ago

OnlyFans arrest sparks calls for reform of prostitution and pornography laws

Phuket3 hours ago

DSI says land documents were illegally issued for the Phuket “Sri Panwa” resort

Thailand4 hours ago

Thailand Top Stories | Abuse allegations at Temple Rehab centre | Sep 27

Thailand5 hours ago

12 Burmese migrant workers arrested in Kanchanaburi

Thailand2 weeks ago

Morning Top Stories Thailand | Police to end protests, Human Trafficking | September 14

Thailand7 months ago

Thailand News Today | Thai Airways in rehab, All go for Songkran | March 4

Tourism7 months ago

Phuket’s nightlife. Yes, bars and clubs are still open | VIDEO

Phuket7 months ago

Thailand News Today | Covid passport talks, Thai Airways heads to court | March 2

Tourism7 months ago

Phuket Thai food treats you need to try | VIDEO

Thailand7 months ago

Thailand News Today | Bars, pubs and restaurants ‘sort of’ back to normal | Feb 23

Tourism7 months ago

In search of Cat & Dog Cafés in Phuket Town | VIDEO

Thailand8 months ago

Thailand News Today | Gambling crackdown, Seafood market to reopen, Vlogger challenge | Jan 21

Thailand8 months ago

Thailand News Today | Covid testing for visas, Business impact, Vaccine approval | January 19

Thailand8 months ago

Thailand News Today | Weekend Bangkok bombs, Thailand fires, Covid update | January 18

Thailand8 months ago

Thailand News Today | Stray car on runway, Indonesian quake, 300 baht tourist fee | January 15

Thailand9 months ago

Thailand News Today | Governor off respirator, sex-trafficking arrest, condo prices falling | January 14

Thailand9 months ago

Thailand News Today | Chinese vaccine, Thailand ‘drug hub’, Covid update | January 13

Thailand9 months ago

Thailand News Today | Bangkok may ease restrictions, Phuket bar curfew, Vaccine roll out | January 12

Thailand9 months ago

Thailand News Today | Covid latest, Cockfights closed down, Bryde’s Whale beached | January 11

Trending