Back to Library

Economic Factors Affecting Rice Production in Thailand

Published by:
Document
Download
Publication date
25/03/2004
Number of Pages
24
Language:
English
Type of Publication:
Studies
Focus Region:
Asia and the Pacific
Focus Topic:
Agricultural Value Chains / Agri-Businesses
Type of Risk:
Managerial & operational
Market-related
Type of Risk Managment Option:
Risk assessment
Commodity:
Crops
Author
Kwinarajit Sachchamarga, Gary W. Williams
Organization
Texas A&M University

The general objective of this study iss to identify and measure the relative magnitude of effect of the key economic factors affecting Thai rice producer planting decisions using an econometric model of the area planted to rice in Thailand.  The results suggest that area planted to rice in Thailand is more responsive to changes in area planted in previous years, the amount of rainfall, and the availability of  agricultural labor than to changes  in paddy rice prices. An important implication of the study is that policies to reduce rural labor shortages could do more to enhance the production of rice in Thailand than annual adjustments in the level of the guaranteed price of rice received by producers.