Farmers Face Growing Debt as Prices Fall and Costs Rise

In a small rice‑planting village north of Bangkok, an older farmer sees the government’s promises slip away after elections. The cost of diesel and fertilizer has jumped because of a distant war, while rice prices have dropped sharply. Farmers like him are now paying more for inputs but earning less from their harvests, creating a debt spiral. A recent poll shows that most people in Thailand doubt the new government’s ability to solve these problems. Only about half of respondents feel hopeful, a steep decline from earlier months when more were optimistic. The country’s economy is already weak, with tourism still recovering and households carrying high debt levels. Household borrowing now equals almost 87 % of the nation’s total output, one of the highest in Asia. The government has tried to help by cutting prices for consumers and offering small subsidies to rice growers, but these measures are too modest to cover the steep rise in production costs.Even a subsidy of around 30 US dollars per acre cannot keep pace with the additional 20‑plus percent cost increase on fuel and fertilizer. Some farmers are deeply in debt, with balances that exceed a million baht each. One farmer, who has farmed for decades, now owes an extra 200 000 baht after his latest crop failed to bring in enough revenue. He says the debt feels impossible to escape before he retires, and that suppliers are now reluctant to give him credit for seeds or fuel. The central bank reports that more than half of the 3. 7 million farmers who borrowed from a state bank are trapped in this debt cycle. With no new loans available, many must rely on the goodwill of suppliers or risk abandoning their fields altogether. Experts say that without a clear plan to raise rice prices and reduce input costs, the government’s confidence will continue to erode. A stable policy that supports farmers and encourages higher production could help restore trust in the government’s ability to manage the economy.