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Weak monsoon may curb Thailand's fertilizer demand

  • Mercados: Fertilizers
  • 16/04/26

Thailand is expected to receive lower-than-normal rainfall in the upcoming southwest monsoon season starting in May, which could slow paddy planting and reduce fertilizer offtake.

The main fertilizer application season, mainly for paddy planting, runs over May-October and depends on monsoon rains because paddy cultivation requires a large amount of water throughout the growing period.

Rainfall across most of Thailand over April-June could be about 10pc below normal, according to the Thai Meteorological Agency. In the northeastern and central regions, where most of the paddy is planted, rainfall is forecast at 380-480mm compared with the normal 474mm in the northeast, and 270-370mm compared 352mm in the central region. Rainfall will likely be above normal in April, but below normal in May and June.

Fertilizer suppliers are also concerned about growers' affordability, given that rice export prices have fallen year on the year, likely reducing farmers' cash flow for purchasing inputs. The ongoing US-Iran war has also tightened urea and phosphate supply, pushing delivered prices to Thailand sharply higher in recent weeks. This will further erode growers' ability to afford fertilizers, traders said.

Thailand's department of internal trade has launched a subsidy programme, Green Flag Fertilizer Plus, to ease the impact of high fertilizer costs and falling rice prices. But the initiative will likely do little to boost planting and fertilizer offtake this season, given expectations of below-normal rainfall levels.


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