The document summarizes the future of Thailand's rice economy and strategies for reforming the traditional rice platform. It notes that rice is Thailand's staple crop but the sector faces issues like a declining labor force and high production costs. It proposes moving to a new rice platform focused on innovation, value addition, and sustainability through strategies like adjusting production supply, encouraging alternative crops, developing niche markets for smallholders, increasing R&D, and integrating agriculture with tourism. The goal is a more competitive rice industry that supports sustainable rural development.

1. The Future of Thailand’s Rice Economy
Assc. Prof. Somporn Isvilanonda
Knowledge Network Institute of Thailand
First Global Sustainable Rice Conference and Exhibition 2017, at UN Conference Center,
Bangkok, Thailand, October 4, 2017
E-mail address: somporn@knit.or.th
สถาบันคลังสมองของชาติ

2. Rice is the Thai’s staple food crop and a major agr. export commodity.
Rice area shares about 47%. About 64% of farm HH and nearly 25% of
labor force are in rice farming. Most of Rice farmers are also a small holder.
Rice is grown in every region. Commercial rice farming is
in the CP & Lower N., with MVs and high rice cropping
intensity.
LVs with high quality rice (Hom Mali) is grown in rain-fed
environment, mostly in NE with one crop a year, and low
yield.
Why Rice Is Thailand’s Important Crop?
Rice Areas by Season and Region ave. 2012-16
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3. Rice Production Growth in
the Past Few Decades
The rice area as well as the production has nearly 3 times rising in the past
four decades.
Before 2000s, rice production growth was a result of cultivated land
expansion, following by increasing rice cropping intensification.
The domestic use and export shares has changed from 80:20, in that time,
to be around 50:50 in recent years.
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4. Major Problems Encountering the Rice Sector
Development
Continuously rising agr. wage rate;
Source: calculated from TDRI data setSource: calculated from OAE data set
A declining trend of farm labor force;
A relatively high unit of rice
production cost;
A declining trend of low rice price in
the world market
Declining a competitive strength of
Thai rice in the world market. 4

5. Thailand Producing Too Much Low Quality
Rice(MVs) for Export Market
Source: Calculated from data available by Thailand
Rice Exporter Association
Thai rice export was 9.87 mil.ton in
2016, mostly in low quality white rice.
The rice production surplus mostly stems from producing too much of low
quality rice, mostly MV in irrigated environment of Center and Lower North.
Combination by major types of rice produces
Domestic use is about half of the
total production. Major types of rice
for domestic consumption are
jasmine, LVs, and glutinous rice.
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6.  Shortage of farm labor and high wage rate, including aging farmers;
 A high unit of production cost;
 Losing competitive strength
 Less efficient rice farming with low farm income and a massive of gov.t
financial subsidy.
 Facing with ice price due to
 produce too much low quality rice;
Traditional Rice Platform
Reforming Devises
New Rice Platform
Traditional Rice Platform Encountering with
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Moving Towards New Rice Platform (1)

7. Reforming Devises
New Rice Platform
Adjusting the rice production supply in consistent with the market demand;
Adopting innovation and value-base as a key driving force in reforming a
performance of the rice sector;
Innovating a unit value of rice commodity and value added products from
rice along the rice supply chain;
Empowering farmers with a new mindset and strengthening their networking
for reducing a unit production cost and gaining quality value and productivity;
Encouraging practices of sustainable and integrated farming systems.
Creating engagements among farmers, business and public sectors in
developing a new rice value chain.
Reforming Devises
Focusing on becoming value- based
and innovation- driving economy
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Moving Towards New Rice Platform (2)

8. New Rice Platform
 Expanded sustainable rice farming practice towards quality and
environmental friendly concerns;
Increased high quality rice production with premium value in response to
the consumer demand for the niche products;
More diversity of value added innovative products along the food and
non-food value chain;
Maintained a competitiveness of the Thai rice in the world market;
New Rice Platform for sustainable Rice Economy
Achieved smart farming with sustainable rural development.
Farmers’ wealthier and smarter;
More integrated rice farming with other farming and non-farming activities
for added benefit to HH;.
Focusing on becoming value- based
and innovation- driving economy
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Moving Towards New Rice Platform (3)

9.  Income and input subsidies have been used for encouraging farmers, in
high rice cropping intensity areas to substitute other economic crops,
particularly in the dry season for reducing water stress and scarcity;
 A zoning measure has been established as a framework for encouraging
rice farmers to grow rice in the most suitable areas. Also, Establishing
learning centers at nationwide to provide capacity building for farmers in
all areas for improving their farming management;
Encouraging farmers to practice the “new theory”
farming system approach initiated by the late King
Bhumibol to achieve the household self-reliant and
getting real benefit.
A soft loan with subsidized interest rate has been provided to farmers
who change their farming practice from mono-rice crop to other economic
crops or integrated farming;
A target plan for declining the rice production supply down to around 25
mil.ton.
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Rice Cultivated Area Intervention for
Adjusting the Rice Production Surplus

10. Farm Field Consolidation for Upgrading
Community Rice Supply Chain
Enhancing a cooperation among farmers, public and business sectors
in term of partnership in the rice supply chain .
Sharing new skill and knowledge to farmers at community level for better
farm planning and management practice with quality and safety concerns,
including a unit cost reduction.
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11. Encouraging and supporting small holders to produce in response to
consumer demands in the niche market in the new rice supply chain.
 Through value creation of produces, e.g. Organic or Environmental
friendly rice; GI rice; Aroma or specific nutritional characteristics rice.
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Enhancing Smallholders Cultivation for
Access to the Niche Markets

12. Escalating Investment in R&D for Upgrading
the Rice Value Chain
Escalating investment in R&D both public and private sectors for creating
innovative products from rice commodities.
How to make rice produce beyond a staple food dish?
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Focusing community base engagement for specific rice production.

13. Creating and Developing Innovative Products
from Rice Commodities
Product development toward quality rice, healthy food &cosmetic products.

14. Integrating Community Rice Base System to
Agro-tourism Towards Sustainable Rural
Development
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To be specialize in commodity
http://www.billionaire.com/travel/properties/758/lifes-little-
luxuries-guide-to-the-best-family-holidays#!slideshowhttps://www.youtube.com/watch?v=_8pHQPB_S-g
Mister Global 2017 pre-contest at
Rai Cherntawan Vipassana Center,
Chiang Rai
Tourists learning rice plant at Dhara
Dhevi, Chiang Mai
Baan Pha Non Nongbon Homstay,
Chiang Mai
http://www.bangkokpost.com/travel/sightseeing/5644/doi-
inthanond-national-park
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15. Changes in Rice Commodity Marketing of
Mass Production
Advance in ICT creates new marketing pathways for farmers, including
online marketing.
the role of conventional rice commodity marketing in the rice supply
chain would be shortened.
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16. Thank you
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