Thailand targets 1 trillion baht milestone for crop revenue

The Commerce Ministry has urged Thai conglomerates and government bodies to collaborate on purchasing economic and secondary crops, targeting a revenue milestone of 1 trillion baht this year.

Commerce Minister Phumtham Wechayachai highlighted that the agriculture sector supports approximately 27 million people, accounting for around 40% of the labour force. This includes 7.4 million households and encompasses key economic crops like rice, rubber, oil palm, corn, and cassava, totalling 87.7 million tonnes.

Secondary crops, which include fruit and three types of root crops (shallots, onions, and garlic), amount to 24 million tonnes, while vegetables add up to 96 million tonnes. Combined, these crops are valued at 1.32 trillion baht, representing 9% of GDP.

Agricultural export revenue reached 1.69 trillion baht last year.

Despite these figures, the agricultural sector grapples with various uncertainties related to income, production, and quality due to external changes that directly impact productivity and farmers’ income, said Phumtham.

“The ministry has introduced measures to address low prices and the surplus of farm products, aiming to enhance farmers’ livelihoods.”

Commerce Permanent Secretary Vuttikrai Leewiraphan, and Internal Trade Department Director-General Wattanasak Sur-iam, have been instructed to implement fruit management strategies for 2024.

They will also promote secondary crops by coordinating with large conglomerates, including department stores, convenience stores, and petrol stations, to purchase crops as part of their corporate social responsibility initiatives.

The 18 categories of secondary crops under monitoring include 13 types of fruit (durian, mangosteen, rambutan, longkong, longan, pineapple, lychee, pomelo, tangerines, marian plum, mango, lemon, and tomato) as well as pumpkins, chilli peppers, shallots, onions, and garlic.

Phumtham stated that the ministry’s agricultural measures have increased economic value by 23% compared to last year, while farmers’ income has risen by almost 200 billion baht.

“Efforts have generated revenue of 1.05 trillion baht, up from 857 billion baht last year.”

The network of partners includes PTT, Charoen Pokphand Foods, petrol stations, industrial estates, hospitals, retail and wholesale stores, local department stores, housing developments, and the Department of Corrections.

The ministry aims to reduce the oversupply of fruit and vegetables by up to 321,579 tonnes, reported Bangkok Post.