PM rules out rubber price subsidy

The government says it will not meet rubber farmers' request

for a price subsidy of 50-60 baht a kilogramme due to budget

 constraints.

If granted, the required budget would be as high as 140 billion

 baht, all for just temporary relief, Maj Gen Sansern Kaewkamnerd,

 a spokesman to the Prime Minister's Office, said on Saturday.

"The prime minister feels uneasy about the planters' threats to

 protest. Demonstrations are illegal and granting them their

 wish is only a temporary remedy," he said.

 Rubber prices have plummeted steadily over the past two years.

The price of raw sheets at the Songkhla market fell two satang

to 34.03 baht a kilogramme on Friday, while that of ribbed

smoked sheets rose 51 satang to 34.63 baht. Prices were above

 100 baht a kg in 2011.

 The government has responsibilities to look after other groups

 of farmers, as well as 67 million people. Therefore, rubber

 planters should be open-minded and join the government

 in finding sustainable solutions, Maj Gen Sansern said.

Representatives from all stakeholders — planters, buyers and

 government officials — came to a conclusion on how to

address the problem on Thursday, he said.

"The ongoing price slump was a result of many factors such as

 falling world oil prices and an oversupply caused by excessive

promotion [of planting] in the past," he said.

He repeated Gen Prayut Chan-o-cha's call for rubber farmers

 to grow other crops or raise animals for supplementary income

and pledged full government support for such efforts.

"As for the demand that we use more rubber for roads or

playgrounds, the government has already done that but

construction takes time," said Maj Gen Sansern.

 

 "The prime minister therefore asked for their cooperation by

not staging protests and promised to speed up relief measures,

prevent prices for falling further and to try to raise them when

 the right time comes."

 Also on Saturday, the Southern Rubber Planters Network said

 its members would meet in Trang next week to press their case

 for government assistance. Taking part will be farmers from

 Phangnga, Krabi, Phuket, Ranong, Phattalung, Songkhla,

Nakhon Si Thammarat and Satun.

"This is not a protest, just a meeting, and we have already

 submitted a request to assemble to Trang's security officials,"

 said a spokesman.

 

The group has four agenda items for the meeting. First, it wants

the Rubber Authority of Thailand to buy rubber directly from

farmers or through bodies that are ready to fill Chinese

government-to-government orders.


It also wants to ask the government why the new rubber board,

for which it has proposed two candidates, has not been appointed.

It also wants to speed up selection of a governor for the Rubber

Authority of Thailand.

Finally, it wants the government to use the remaining 397,000

tonnes of rubber stocks locally as stipulated by a cabinet

resolution on Nov 30.

A network of small rubber planters in Trang, led by Saksarit

Sriprasart, also said its members would hold a hunger strike

 starting Monday.

 Global demand for natural rubber is slowing as the economy

cools in China.

Supplies are expanding after a decade-long rally in prices to

a record in 2011 encouraged top producers like Thailand,

Indonesia and Vietnam to plant more trees.

 

Output will exceed demand for two more years, with the surplus

 quadrupling in 2016, according to The Rubber Economist Ltd,

a London-based industry researcher.

 The export price from Thailand, the top producer, is down 23%.

 Global production is set to exceed demand by 411,000 tonnes

next year and by 430,000 tonnes in 2017, compared with a

 surplus of 98,000 tonnes in 2015.

The government in November approved 13 billion baht to

support farmers Land owners and their workers will get

 a combined 1,500 baht a rai for plantations up to 15 rai.

 About 80% of growers own 25 rai or less. An additional

 5 billion baht was approved in December for producers

who pursue alternative employment.


News,General,Bangkok Post, 9 January 2016.

 

Agree that with budget constraints the government should

not use a lot of budget only to support the rubber because

we have a lot problem with other agricultural crop too.

 

As the forecast of global production surplus supply of

411,000 tonnes next year and by 430,000 tonnes in 2017.

 So we must stimulate consumption of domestic demand

to help absorb the surplussupply.

 

Sincerely Yours.