Agricultural production in Thailand depends heavily on pesticides to increase yield. The early importation of pesticides into Thailand was in the form of finished products. In order to reduce the cost of these pesticides some companies, later on, imported the technical grade ingredients and formulated them locally. Production of pesticides involves only the formulation of materials in liquid or solid form, which are all imported. The major companies importing and formulating pesticides are mostly related to multi-national corporations. Because of the availability of farm and water resources suitable for agricultural production, agro-chemicals will continue to be in high demand in Thailand. The Thai Government has a policy to promote pesticide industries in Thailand. The "National Committee on Fertilizer and Pesticide Industry Development" has been set up to develop the industry. Promotional privilege can be granted by the Board of
Investment. Production and trade of pesticides in Thailand will be controlled by two Acts. The first one is the Industrial Article Act of 1969, which was amended in 1975. The other one is the Poisonous Article Act of 1967, which was amended in 1973.