Trends in RTG agricultural policies

Thus, future increases in both farm output and farmers" incomes are predicated upon raising productivity through application of new and greater quantities of inputs. The prices of both agricultural inputs and output will play a crucial role in such developments. In light of this relationship, this report analyzes Royal Thai Government (RTG) policies relating to agricultural pricing and provision of key inputs to farmers. Regarding inputs, the author reviews RTG policies bearing on the availability of chemical fertilizers, improved seed, irrigation and other sources of water, farm labor, agricultural machinery (especially tractors and water pumps), pesticides, and credit. The author provides the startling fact that only 10% of Thai farmers have access to credit. RTG pricing policies for rice, sugar, and rubber are briefly investigated. The author concludes that RTG input and output pricing policies have contributed little to raising agricultural production and have discriminated against the small farmer. In particular, these policies have raised the price of fertilizer and lowered that of rice, thereby discouraging farmers from growing more rice. Further, supplies of water, seed, and credit have not kept pace with farmers growing demand and farmers have not been trained in the efficient and widespread use of fertilizer, pesticides, and farm machinery. The author recommends that RTG policies be redirected towards the objectives of raising farm income, providing incentives to farmers, and reducing income disparity within the farm sector. Appended are a 40-item bibliography (1966-79) and statistical data on the price and use of fertilizer, seed requirements and production, irrigated area, and the importation and use of pesticides.