Thailand is facing a critical decision as it negotiates a free trade agreement with the European Union, with the EU proposing that Thailand adopt the 1991 International Convention for the Protection of New Varieties of Plants (UPOV 1991). This move could significantly impact the country's agricultural sector, with projections suggesting that domestic crop production costs could rise by up to 1,000 baht per rai. Aat Pisanwanich, a lecturer at Rangsit University’s Institute of Economics, warns that consumer prices for rice-based products could increase by 4% as a result.
The cost burden on farm inputs is a major concern. Seed procurement currently accounts for 10% to 15% of total crop production costs in Thailand. Shifting to international breeder mandates could increase production costs for staple paddy rice by 125 to 500 baht per rai, feed corn by 200 to 800 baht per rai, industrial sugar cane by 250 to 1,000 baht per rai, and tapioca by 125 to 500 baht per rai. These upstream increases would squeeze operating margins for food manufacturers, feed millers, and grocery distributors, potentially leading to higher retail prices.
Regional precedents provide mixed insights. Vietnam, which joined the UPOV framework in 2006, saw commercial breeders increase their registered local varieties by 50%, but seed prices for protected crop lines rose six to eight times above standard open varieties. In contrast, India rejected UPOV membership entirely, relying on its domestic protection framework under the World Trade Organization TRIPS agreement, and is still set to sign a free trade agreement with the EU in December 2026. Indonesia has adopted the 1991 standards with bespoke domestic exemptions ahead of its trade deal taking effect in January 2027.
The Thai Seed Trade Association is advocating for amendments to the Plant Varieties Protection Act of 1999 to clarify definitions of general domestic plant varieties and to retain legal allowances for smallholders to save seed supplies across seasons. Thidakoon Saenudom, director of the Plant Standard and Certification Division at the Agriculture Department, emphasizes the need for government funding for plant breeding R&D to ensure publicly developed varieties remain available as an alternative for farmers.