Thailand Unveils Five-Tier Strategy to Boost 7.7 Million Farmers

Deputy Prime Minister and Commerce Minister Suphajee Suthummaphand led a team announcement today presenting a vision and strategic plan to drive trade, tourism, and community economics under Thailand's Trade & Services Engine cluster framework. Thailand faces five major global shifts—geopolitical realignment, risk diversification, digital technology and AI adoption, environmental pressures, and demographic aging—that directly threaten the nation's economic structure and competitiveness. As a mid-sized country caught between larger powers, Thailand must shift its approach, reduce dependence on traditional markets, adapt to green-economy standards, leverage technology to identify opportunities faster, and manage a shrinking workforce amid rising welfare costs.

The government under Prime Minister Anutin Charnvirakul is deploying a four-pillar economic cluster framework: investment, trade and services, human capital, and public-sector efficiency. Suphajee leads the Trade & Services Engine pillar, covering tourism and wellness, creative economy, agriculture and food, retail and wholesale, and international trade. This has been translated into four working groups: creative economy and visitor economy; agricultural products and food security; community economy and SMEs; and international trade, supported by nine experts tasked with strategic recommendations and real-world delivery.

In agriculture, Thailand must address the full supply chain: upstream, midstream, and downstream. With 7.7 million farming households representing 29.3% of the population and using 147 million rai of land but generating only 8.8% of GDP, productivity must rise through value-added processing and new market creation under demand-driven principles. Thai rice prices have improved to around $400 per ton, outpacing India and Vietnam at times, but farmers must benefit from high prices rather than selling early. Durian earned over 130 billion baht this year yet remains mostly sold fresh; accelerated processing and storage are critical.

Thailand has approximately 3.28 million SMEs, representing 99.5% of all businesses, and must be upgraded from startup through scale, leadership, and regional-player status via capital, technology, market access, regulatory reform, and anti-nominee protections. For international trade, Thailand must retain existing markets, expand in cities, provinces, and states, accelerate negotiations using free-trade agreements, boost local content, and integrate SMEs into global supply chains. The strategy aims to push Thai products into new markets while bringing markets into Thailand, anchored by farmers, communities, and small businesses.