Government allocates 1 billion baht to support longan farmers amid surplus crisis

Thailand’s government to distribute 1 billion baht to longan farmers, offering 1,400 baht per rai to help cope with market surplus and plummeting prices.

Agriculture Minister Atthakorn Sirilatthayakorn has announced a 1-billion-baht support package for longan farmers in response to the market surplus and significant price drop. The assistance will offer farmers 1,400 baht per rai, up to 10 rai per household, as part of a broader effort to manage the oversupply of longan in the market.



Atthakorn highlighted that the Ministry of Agriculture and Cooperatives has already prepared a proposal for a longan quality development project. This includes supporting farmers to cultivate high-quality longan, with 1,000 baht per rai for pruning, and 400 baht per rai for agricultural inputs, to encourage the continued production of AA-grade longan. This proposal will be presented to the Fruit Development and Management Committee to ensure sustainable solutions for the longan industry.

Additionally, the ministry is implementing three key measures:

1. Credit Support Measures: A proposal for an interest-free loan scheme for purchasing longan for drying and processing, aimed at agricultural communities, large-scale farmers, and cooperatives, working with the Bank for Agriculture and Agricultural Cooperatives (BAAC) to improve liquidity for longan processors. This measure also includes support for exporters and drying facilities to ensure the smooth distribution of longan to various markets.

2. Production Distribution Measures: A project for the distribution of fresh longan via agricultural cooperatives, working with public companies listed on the stock exchange, transportation companies, and retail outlets in both urban and rural areas, including tourist sites. Coordination with the Ministry of Education will also ensure longan products reach schools, while the Ministry of Commerce will assist in expanding distribution channels.

3. Labour Solutions for Harvesting: The ministry will coordinate with security agencies to facilitate the movement of labour during the peak harvesting season, especially when longan yields reach the market simultaneously.

Peerapan Khothong, Director-General of the Department of Agricultural Extension, stressed that these measures aim not only to address the immediate challenges but also to create long-term structural changes. The plan focuses on improving quality, adding value, and establishing a sustainable market system for longan. If these initiatives continue successfully, they will not only address the current surplus but also secure the livelihoods of farmers and restore global confidence in Thai longan.

The farm-gate price of longan, which stood at 20 baht per kilogram last week, has dropped continuously by 2 baht per day, with the current price (as of July 21, 2025) at 12 baht per kilogram. If the price drops below 10 baht per kilogram, farmers will not cover their costs, as the majority of their expenses are labour-related for harvesting.

The sharp price decline is attributed to the high volume of production, as well as the practice of some longan processing companies (known as “long”) closing their doors to purchases or imposing strict quotas, citing an inability to keep up with the drying capacity.

(2025/07/22-00:00)