Bangkok: Suriya Jungrungruangkit, the Minister of Agriculture and Cooperatives, has expressed concerns about the agricultural GDP in the second half of the year, citing potential pressures from the global economy and ongoing international conflicts.
According to Thai News Agency, the Minister acknowledged that the Thai agricultural sector faces numerous risks in the coming months, including a global economic slowdown, volatile oil and fertilizer prices, and the El Ni±o phenomenon, which could all impact production costs and the competitiveness of Thai agricultural products.
Despite a projected growth of 2.4 percent in the agricultural GDP for the first quarter of 2026, Mr. Suriya highlighted the need for vigilance due to factors such as stricter trade measures by trading partners, volatility in the Thai baht, and the conflict in the Middle East, which may affect energy prices and agricultural production costs. The risk of El Ni±o could further exacerbate these challenges by causing prolonged dry spells and droughts, impacting production costs and purchasing power in export markets.
To address these risks, the Ministry is implementing Quick Win measures through five task forces aimed at reducing costs, managing water resources, and providing urgent assistance to farmers. These measures include managing the impact of the Middle East situation, optimizing agricultural products for export and domestic use, and enhancing water and land management. The Ministry is also focusing on creating a new generation of Smart Farmers and addressing disaster and pollution issues.
To mitigate production costs, the Ministry plans to promote renewable energy and precision agriculture, encourage the use of fertilizers based on soil analysis, and establish new import sources for chemical fertilizers. These initiatives align with the Bio-Circular-Green (BCG) economic model, aiming to enhance production efficiency and create long-term stability for the Thai agricultural sector.
In the first quarter of 2026, the agricultural economy saw a 2.4 percent expansion compared to the previous year, supported by favorable weather conditions and adequate water resources. However, the fisheries sector experienced a contraction due to higher energy costs and decreased foreign orders. The Ministry continues to monitor global economic volatility, energy prices, and weather conditions to prepare measures that mitigate the impact on farmers and the production sector.