TOBACCO INDUSTRY AND ECONOMIC MOTIVATED IN PHRAE PROVINCE (1938 – 1966)

Abstract

The research article titled "Tobacco Industry and Economic Motivation in Phrae Province, 1938 – 1966" aims to study the operations of the tobacco industry in Phrae Province, a significant factor driving the local economy during the specified period. The findings reveal that the tobacco industry began in the 1940s, with the government aiming to make tobacco a source of revenue. To achieve this, the Tobacco Act was enacted in 1938, and farmers were encouraged to cultivate Virginia tobacco. By the 1950s, both investors and farmers had entered the tobacco industry extensively, with capitalists acting as independent tobacco leaf curers and farmers as plantation workers. Tobacco became a vital economic crop, generating employment and income for the people of Phrae. Additionally, there were adjustments made by both investors and farmers to enhance capital accumulation opportunities. Investors adapted through three main strategies: 1) buying and selling tobacco curing stations, 2) exporting tobacco leaves abroad, and 3) expanding into other tobacco-related businesses. Meanwhile, tobacco farmers adjusted by participating in a self-curing farmer system in 1966. This system enabled farmers to become small-scale capitalists, managing both the cultivation and curing processes on their farms.