Bangkok: Deputy Prime Minister and Minister of Agriculture, Captain Thamanat Phromphao, called an urgent meeting with permanent secretaries and directors-general from various departments to evaluate the potential impact on Thailand's agricultural sector due to rising tensions in the Middle East. The meeting focused on addressing potential increases in production costs driven by escalating energy prices and logistics expenses.
According to Thai News Agency, Thammanat emphasized that although Thailand's agricultural exports to the Middle East are limited, the risk of a shock to production costs is significant. The meeting aimed to develop strategies to mitigate these potential impacts. Thammanat ordered preparations to begin on Friday, February 27, 2026, and convened the meeting to expedite the assessment of expected impacts, with a summary of results to be provided later.
A major concern discussed was the volatility in energy prices and transportation costs linked to the Middle East situation, which could affect agricultural production costs related to energy, fertilizers, and logistics. The potential for a prolonged closure of the Strait of Hormuz or damage to energy infrastructure could further escalate energy prices, applying additional pressure on global production and transportation expenses.
An analysis by the Office of Trade Policy and Strategy (OTPS) of the Ministry of Commerce noted that agricultural products are not the primary goods exported by Thailand to the conflicting countries. Thailand's trade with Israel is valued at US$1,376.86 million, representing 0.20% of its total global trade, with main exports being automobiles, processed food, electrical appliances, and industrial goods.
Trade with Iran stands at US$146.18 million, or 0.02% of Thailand's global trade, with key commodities including processed foods, canned fruits, and rubber, though the overall market size remains limited. Overall, Thailand's trade value with the Middle East is US$40,535.64 million, 5.92% of its global trade, with key exports being automobiles, air conditioners, processed food, and industrial goods, but a trade deficit mainly due to energy imports.
The Trade Policy and Strategy Office (TPSO) highlighted indirect risks, particularly concerning over 77,000 Thai workers in Israel. If they need to return to Thailand, it could reduce remittances supporting families in agricultural and local sectors, increase domestic job-search burdens, and affect rural purchasing power.
The Prime Minister recently held a meeting with relevant agencies and private sector representatives to continuously monitor the situation and evaluate both direct and indirect impacts on Thailand's economy.