Farm incomes rose 9% year-on-year in May, the highest in 13 months, and grassroots consumption is likely to rise in the future, according to the Fiscal Policy Office (FPO).
Pornchai Thiraveja, economic and monetary adviser, said on Thursday that farm incomes had dropped by 4.7% in the first quarter this year then reversed direction and increased in April by 7.8% and then 9% last month. Consequently farm incomes for the period January to May were down by only 0.3%.
Surveys found that the price of Hom Mali fragrant rice rose from 15,000 baht in April to 18,000 baht a tonne in May. The price of oil palm nuts went up from 2.81 baht to 3.1 baht per kilogramme and natural rubber from 43.22 baht to 45.68 baht per kilogramme last month.
Mr Pornchai said the sales of passenger cars also rose, up 26.8%, and commercial vehicle sales were up by 28.6% in May.
He believed that grassroots consumption was about to increase.
Sorapol Tulyasathien, FPO macroeconomics director, said the economy was expanding in quality with growth increasingly spreading and reaching the grassroots. Improving farm incomes were the proof, he said.
The FPO informally predicted the economic would grow by 4.5% this year.
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