The purpose of this paper is to examine the change in paddy distribution system in Thailand, with a special attention to the functions of commercial capital in the assembly stage.
The functions of commercial capital can be classified into two in main groups; fundamental and subsidiary. Their fundamental function is to unite supply with demand, both in value and value in use. It can be appeared as acts of commercial capital, such as buying for selling and assembling for dispersion. Subsidiary function includes transporting, storing, standardizing, financing and risk-taking. For the commercial capital dealing with agricultural products, these two groups of functions are closely related. In the developing economies, especially, it is almost impossible to separate them. Thus, it remains a chance for commercial capital to be unjust in transaction.
In a case of paddy market in Thailand, the distribution channels of paddy have become diversified with the expansion of market. The functions of commercial capital dealing with paddy, however, has become more simple and justified by the development of social surroundings, e. g. motorization in rural area, generalization of market information, complicated standardization and indirect intervention of government. This transformation on their functions is embodied in the formation of assembly market in producing area (than khao ptuak and talaat claartg khao Pluck).