Can Thailand Produce Its Own Chemical Fertilizers? /By Longtunman
"Expensive fertilizer" is another ripple effect from the conflict between the US and Iran, which could ultimately impact the meals on every Thai person's plate.
This is because Thailand imports tens of billions of baht worth of fertilizer annually. Last year alone, we imported approximately 95,000 million baht of chemical fertilizers, including both single-nutrient and multi-nutrient compounds.
But the question worth considering is:
Can we stop importing these chemical fertilizers? Is it possible for Thailand to produce them domestically? How much production capacity do we actually have?
Longtunman will explain it to you.
Thailand is an agricultural land. Every product sent to the global market—whether it is rice, cassava, sugarcane, rubber, or palm oil—relies almost entirely on chemical fertilizers.
Specifically, rice—one of Thailand's primary agricultural exports—accounts for 51% of the country’s total fertilizer consumption, which is more than half.
Last year, Thailand imported 95,000 million baht worth of chemical fertilizers, primarily from China, Saudi Arabia, Russia, Malaysia, and Oman.
This 95,000 million baht import figure is divided into:
Regardless of the type we import, the three essential nutrients for plant growth are N, P, and K: Nitrogen, Phosphorus, and Potassium.
Therefore, if we want to establish a self-sufficient chemical fertilizer industry in Thailand, we must be able to produce Nitrogen, Phosphorus, and Potassium fertilizers ourselves.
The question is: Can Thailand produce them?
Starting with Phosphorus fertilizer
This fertilizer is derived from phosphate rock. While Thailand is capable of producing phosphate rock locally, the output is quite limited. This is because phosphate deposits are typically formed from the accumulation of animal droppings (guano) in limestone mountain areas.
These minerals are largely found in the Northern and Central regions. Consequently, last year we imported only 8,100 tons of phosphorus fertilizer, valued at about 54 million baht.
This figure represents only 0.05% of Thailand's total chemical fertilizer imports—an almost negligible proportion.
The core problem for Thai fertilizer production lies with Nitrogen and Potassium.
Starting with Nitrogen fertilizer: the raw material is ammonia, created by reacting nitrogen gas with hydrogen gas.
This hydrogen gas is derived from methane (natural gas) reacting with steam under high heat and catalysts.
As a result, Middle Eastern countries hold a significant advantage due to their vast natural gas reserves. Countries like Qatar and Saudi Arabia have become the world's leading exporters.
Last year, Thailand imported the most nitrogen fertilizer from Saudi Arabia, accounting for roughly 37% of the total import value of 40,988 million baht.
Even though Thailand has its own natural gas sources and gas separation plants, we cannot compete with the lower production costs offered by Middle Eastern nations.
Furthermore, natural gas can be used to create other products with higher value, such as petrochemicals, plastic precursors, or compressed gas for vehicles (NGV).
It is also a vital energy source for Thailand’s electricity generation, making it difficult to divert for chemical fertilizer production.
Since the hope of producing nitrogen fertilizer to reduce that 40,000 million baht import bill has faded, Potassium fertilizer has become the next big hope.
Last year, Thailand imported 1.1 million tons of potassium fertilizer, valued at approximately 14,000 million baht, or 15% of total fertilizer import value.
This means if we could produce potassium fertilizer domestically, we could save over 10 billion baht in import costs every year.
In fact, data from the Department of Mineral Resources shows that Thailand has approximately 10,000 million tons of potash reserves. These are mostly found in the Northeast, including Udon Thani, Chaiyaphum, Nakhon Ratchasima, Kalasin, Maha Sarakham, and Roi Et.
Udon Thani, in particular, contains Sylvite, a high-quality potash mineral ideal for potassium fertilizer production.
Currently, three potash mining projects have been granted concessions by the Ministry of Industry:
Nakhon Ratchasima Project: 9,005 rai in Dan Khun Thot, operated by Thai Kali Co., Ltd.
Udon Thani Project: 26,400 rai in Mueang District, operated by Asia Pacific Potash Corporation Ltd.
Chaiyaphum Project: Located in Bamnet Narong, operated by ASEAN Potash Chaiyaphum PLC.
However, these mines have not yet begun serious operations due to long-standing environmental concerns and local opposition.
The primary fear is potash contamination in natural water sources—both groundwater and surface water—which could render local water supplies undrinkable. This would severely impact communities and nearby farming.
Additionally, mining carries risks of land subsidence and requires massive amounts of water, which might compete with the agricultural needs of neighboring communities.
Thus, we must wait and see if potash mining in Thailand will ever truly materialize.
The major benefit would be reducing costs for farmers. If Thailand can produce its own potassium fertilizer, it would cut import costs by tens of billions of baht.
However, all risks must be evaluated comprehensively to see what we might have to sacrifice. Alternatively, other solutions like organic fertilizers could help reduce the dependency on volatile chemical fertilizer prices.
Interesting Fact:
Did you know that Thailand once had the National Fertilizer Co., Ltd.? It was a joint project between the government and the private sector established in 1982 to make Thailand self-sufficient in fertilizer production.
Ultimately, the company was buried in debt following the Tom Yum Goong financial crisis. The government lost its ownership stake, and the company was privatized. Today, it has become NFC Public Company Limited, focusing instead on selling petrochemical products like ammonia and sulfuric acid.