Rising fuel and fertiliser costs in Thailand are deepening farm debt and eroding public support for the government, according to a report by Inside Retail Asia.
The cost pressures are forcing many small-scale farmers to take on additional debt, with some unable to cover basic inputs. This financial strain is translating into higher food prices for consumers, as producers pass on increased costs. The agricultural sector, a pillar of Thailand's economy, faces shrinking margins, prompting protests and political discontent.
As household budgets tighten, Thai consumers are shifting spending away from discretionary goods toward essentials, reshaping retail demand. Supermarkets and convenience stores are adjusting inventory to prioritize affordable staples, while luxury and non-food sectors experience slower sales. The trend highlights the broader impact of input cost inflation on Southeast Asia's second-largest economy.