Durian and agriculture insurance a focus for Thailand
The Thailand Office of Agricultural Economy (OAE) is focusing on systemizing insurance for durian and other agricultural products as the sector is expecting to see an increase of 2-3% percent in 2023.
OAE deputy secretary-general Chantanon Wannakejohn said that high-value fruits such as the durian have been given priority for specialized insurance this year, with a first project already up in the Nonthaburi province. Agricultural insurance for farmers was also ramped up in the last two to three years to help them grow rice and maize.
The government office foresees that agriculture in the country would reach THB700 billion to THB800 billion this year.
Insurance fitting a king (of the fruits)
Thailand is ranked as the number-one exporter of durian in the world. The durian, known as the king of the fruits, is one of the country’s major agricultural exports. It is characterized by its strong odor and unusual flavor. In a report from Khaosod, Wannakejohn said that several laws need to be revised in order to protect the 1.3 million rai durian farms in the country.
“Durian insurance will start in Rayong and Chanthaburi provinces. We will set up wind-force metres to find out at what wind force a durian falls and calculate how much we should pay farmers,” Wannakejohn said. “In the future, however, the system needs to be more comprehensive, e.g. insurance to support the farmer in case of an accident or if he does not get an adequate selling price. We are in the process of reviewing the law. This will take a little time.”
Thailand is not the only country that sees its economy benefitting from an agricultural boom. Recently, a Philippine bill encouraging participation from the private sector for agricultural insurance passed its third and final reading in Congress.
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