Re-examination of rural cooperative credit association in Thailand

Purpose of Study

Postwar changes in the structure and practices of Thailand agriculture have been significant. The financial requirement of the farmers has expanded rapidly in recent years, much like the increases experienced in other sectors of the national economy. Farmers are in need of added capital to clear land, improve efficiency, mechanize and make other improvements in order to increase production and compete more effectively in fulfilling their role in the economy.

It is believed Thai farmers are lacking in available credit institutions to provide needed capital funds. The cooperative credit association is one of the favorite sources that farmers could use for their financial requirements. But these cooperative credit societies lack sufficient loanable funds to meet farmers’ large financial requirements.

The purpose of this study is to find out whether the farmers really need more credit and whether the cooperative credit system is able to supply loanable funds to meet these requirements. In answering these questions, some specific conditions of the country will be studied; operation of the cooperative credit system will be analyzed and described; and an appraisal and some recommendations will be made. The cooperative credit system in the United States Is also studied to support the recommendations of certain improvements and changes developed in the study.