Under the influence of the global supply chain bottleneck and the energy crisis, the price of chemical fertilizer continues to rise to a 10-year high, which is a challenge for many Asian countries. As the rise of chemical fertilizer has pushed up agricultural costs, the market is worried that the price of rice will rise.

Rice is the staple food for half of the world's population, and the sharp rise in fertilizer prices may be transmitted to rice. Thailand is the third largest rice exporter in the world. In the coming planting season, local rice farmers may face unbearable cost pressure.

Pramote Charoensilp, President of the Association of Thai Agronomists, said that the cost of chemical fertilizer in Thailand will double from 2020. The current price is 16000 baht ($480) per ton, compared with the average price of 10000 baht per ton last year.

Pramote said that in the next few months, this will become a problem for rice farmers. Many of them have harvested the rice of the previous season and are preparing to sow, so they need fertilizer in an interview on Tuesday, and now a ton of chemical fertilizer is more expensive than a ton of rice.

Rice is the staple food of many Asian countries, and the soaring price of chemical fertilizer caused by the global energy crisis is bound to increase the living cost of many farmers in the region. In some countries, this may lead to governments having to intervene and increase farmers' subsidies to ensure basic supply.

Like many other rice producing countries, Thailand imports almost all urea, phosphate and potassium fertilizers from abroad, including China. This makes Thailand more vulnerable to changes in China's export policy, and the rising logistics costs exacerbate the dilemma.

According to a customs notice on October 11, China is strengthening the inspection of fertilizer exports because of concerns about the impact of rising prices on domestic food safety. China is a major supplier of urea and phosphate in the global market, including India, Pakistan and Southeast Asian countries.

Pramote said that although most rice fields in Thailand have not been affected by floods, and exporters' shipment target this year remains at 6 million tons, fertilizer costs will become a big problem for farmers. The government should intervene.