Trends and determinants of irrigation investment in Thailand

Domestic price policy was largely determined by export policies such as export taxes and quotas. However, beginning in the mid 1970s, there was a broadening of policy concerns of the government in the rice sector, with an increased concern for domestic, consumer, and farmer welfare, and for domestic price stability. Unlike the rice importing countries in Southeast Asia, Thailand has generally not used production policy programs to accelerate production and influence domestic prices. With relatively abundant land for expansion of cropped area, there has been less reliance on intensification of rice production than in countries such as Indonesia and the Philippines. However, as will be shown below, there has been a shift since the mid 1970s, with yield growth playing a larger role in overall production growth as expansion of cropped area slowed. An important contributor to this yield growth has been the expansion in irrigated area. This paper assesses trends and determinants of irrigation investment in Thailand. The paper examines trends in rice area, yield, and production in irrigated and non-irrigated areas; assesses trends in irrigation investment and service area completion; examines the status of irrigated area and yield on a regional basis; presents results from the estimation of irrigation investment functions which explain changes in government irrigation investment levels overtime; and summarizes policy directions in irrigation. (Author abstract)