Rural Thailand: Change and Continuity

Despite rapid industrialization in Thailand, the contribution of agriculture to GDP remains unusually high. The share of agricultural employment in total employment has also remained high, relative to the country’s income level, as has the share of the rural population relative to the total population. Agribusiness has grown significantly, and there has been a rise in the number of large and strongly financed commercial farms that are less labour intensive. Contract farming has also been developing.

The introduction of a rice premium by the government obstructed the modernization of the agricultural rice sector and caused the rice share in GDP to steadily decline, while that for upland crops such as cassava, maize, sugarcane, and oil palm increased. However, rice remains the most important crop. The high proportion of the population still living in rural areas and working in the agricultural sector attests to the resilience of that sector in the face of industrialization.