Thai Cassava and Sugarcane Farmers Express Concern Over Biofuel Subsidy Expiry

According to a report by Prachachat Business, the Thai Cassava Growers Association and the Northeastern Sugarcane Growers Institute have voiced significant concerns regarding the future of biofuel price subsidies. These subsidies, currently managed under the Oil Fund Act, are scheduled to expire on September 24, 2026.

Farmers fear that the termination of these financial supports will lead to a sharp decline in domestic demand for ethanol, which is a primary derivative of their crops. The associations are calling on the Thai government to expedite and clarify its energy transition roadmap to ensure that the agricultural sector remains protected during this shift.

For residents and travelers in Thailand, this situation is primarily an economic matter concerning the agricultural supply chain and national energy policy. While there is no immediate impact on fuel availability or pricing at the pump for consumers, the potential reduction in ethanol demand could influence the long-term stability of the local farming industry. It remains to be confirmed whether the government will introduce new support measures or extend the current subsidy framework before the September deadline. Stakeholders are currently awaiting further policy guidance from energy authorities to understand how the transition will be managed.