Thai Farmers Urge Government to Clarify Energy Transition Plan

According to a report by Khaosod Online Thailand, representatives from the Thai Cassava Farmers Association and the Northeastern Sugarcane Farmers Institute have expressed concerns regarding the upcoming expiration of biofuel price subsidies on September 24, 2026. These subsidies, managed under the Oil Fund Act, currently support the price structure of E20 fuel.

Farmers fear that if the government fails to implement a clear transition plan for the 2026–2030 period, the price gap between E20 and standard gasoline may narrow. This could reduce consumer demand for E20, subsequently lowering the demand for ethanol. Given that Thailand currently has an ethanol production capacity of over 7 million liters per day—with actual usage at approximately 3.5 million liters—a drop in demand could exacerbate existing oversupply issues. This would likely impact the procurement volume and market prices for cassava and sugarcane, directly affecting farmers' incomes.

For residents and those involved in the local agricultural supply chain, this situation highlights potential volatility in fuel pricing and agricultural commodity markets. The associations are advocating for a shift in government policy from simple price support to a system focused on value-added creation and new market development. As of now, it remains to be confirmed what specific measures, if any, the government will introduce to replace the expiring subsidies and stabilize the energy sector.