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Rubber farmer representatives cancel rally plan after being summoned to Army camp


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Rubber farmer representatives cancel rally plan after being summoned to Army camp

By The Nation

 

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The Trang Internal Security Operations Command has summoned two leading representatives of southern rubber growers, resulting in the pair’s withdrawal from a plan to rally in Bangkok on Monday to pressure Agriculture Minister General Chatchai Sarikulya.


Farmers are upset over what they see as Chatchai’s failure to adequately address falling rubber prices. 

 

Both Tanomkiat Yingchuan, an adviser to a network of rubber farmer groups, and Prathob Suksanan, president of the Trang rubber farmers network, were summoned at 11pm on Saturday night to a meeting at the Phraya Ratsadanu Pradit Camp. 

 

Prathob said he had heard while travelling to the Army camp that national security agencies had summoned leading members of rubber growers’ groups including those in Phatthalung to similar meetings, which he said was inappropriate. 

 

He also urged national security agencies to understand that rubber growers were in trouble due to the minister’s mismanagement, and the protest was meant to demand Chatchai take responsibility for the problem and solve the declining rubber prices.

 

Trang Governor Siripat Pattanakul said after a 30-minute meeting with Tanomkiat and Prathob that the Fourth Army Region chief had not summoned the two men as had been speculated, adding that he had done so to learn what farmers wanted and what the problem was. 

 

Siripat said he had offered to coordinate with relevant authorities including Prime Minister Prayut Chan-o-cha to address problem and would offer the provincial authority’s opinion so that the issue could be addressed at all levels simultaneously. 

 

After the meeting, Prathob and Tanomkiat said they were confident that Siripat could help so Trang farmers would follow the authorities’ advice rather than join other regional rubber growers in the Bangkok protest on Monday. 

 

Rubber farmer groups are upset that during Chatchai’s term as minister the Thai Rubber Joint Venture Co Ltd was formed by the Thai Rubber Authority in collaboration with five major rubber firms allegedly to the detriment of small-scale farmers. 

 

Tanomkiat late last week said the joint venture was supposed to help farmers in principle, but in practice it had benefited large-scale investors, so his group would demand the Thai Rubber Authority withdraw from the venture and enforce rubber price management rules.

 

Source: http://www.nationmultimedia.com/detail/national/30331422

 
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-- © Copyright The Nation 2017-11-13
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8 minutes ago, halloween said:

I have a small problem with their basic concept - that the Agriculture Minister is responsible for low commodity prices on the world market.

I think you are on to something there. Might it not be that buyers of rubber are being more selective in the quality of what they get for their money. No one is saying too much as the quality of Thai rubber as compared to the other rubber producing countries. In fact their silence on the subject of quality could lead one to suspect they have something to hide. If it was of superior quality they would be bragging about it which is a natural thing for Thais to do.

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1 hour ago, halloween said:

I have a small problem with their basic concept - that the Agriculture Minister is responsible for low commodity prices on the world market.

I would think that at government level and the top latex producing country in the world and with Malaysia and Indonesia control well over 90% of global production, Thailand can be a pivot to better control of supply and demand. He can also plan to attract natural rubber producers for health and scientific and mechanical parts to set up plants in Thailand with a good package of tax breaks and export incentives. 

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9 minutes ago, Eric Loh said:

I would think that at government level and the top latex producing country in the world and with Malaysia and Indonesia control well over 90% of global production, Thailand can be a pivot to better control of supply and demand. He can also plan to attract natural rubber producers for health and scientific and mechanical parts to set up plants in Thailand with a good package of tax breaks and export incentives. 

Producers control supply, not demand. If attracting added value manufacturing would be so beneficial, can you suggest any reason this hasn't happened in the past (except for the fact most latex production is in the south)?

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4 hours ago, webfact said:

He also urged national security agencies to understand that rubber growers were in trouble due to the minister’s mismanagement, and the protest was meant to demand Chatchai take responsibility for the problem and solve the declining rubber prices.

There is no single person in the world that can take responsibility for a declining price on international products.
The solution is pretty simple. Stop looking at what your neigbour does. Ohh! He make money on that, then I do the same thing.
Result is declining prices due to overproduction. When all persons working with the same things get their heads out of their fat (you kinow what I mean). Then a change is possible.

 

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14 minutes ago, halloween said:

Producers control supply, not demand. If attracting added value manufacturing would be so beneficial, can you suggest any reason this hasn't happened in the past (except for the fact most latex production is in the south)?

What has the past got to do with the current rally against the agriculture minister. 

Prices are determined by supply and demand. 

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12 minutes ago, Eric Loh said:

What has the past got to do with the current rally against the agriculture minister. 

Prices are determined by supply and demand. 

You stated ' ....Thailand can be a pivot to better control of supply and demand.' The Agriculture Minister can have very little effect on world demand (except for in-country purchases similar to those alreadybeing carried out).  Do you think he should send out the bulldozers to reduce supply?

Edited by halloween
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14 minutes ago, halloween said:

You stated ' ....Thailand can be a pivot to better control of supply and demand.' The Agriculture Minister can have very little effect on world demand (except for in-country purchases similar to those alreadybeing carried out).  Do you think he should send out the bulldozers to reduce supply?

Thailand seats on the ITRC with Malaysia and Indonesia and have a majority of natural rubber production globally. It is of Thailand interest to make more efforts to negotiate for better control of supply. So far, the the ITRC lacks commitment and continuity. Malaysia and Indonesia are not pursuing this supply commitment because they have reduced their rubber plantation for other crops like palm and more down stream processing. Thailand is just the opposite with policies to increase plantations and to concentrate on primary processing for exports. Thailand needs to drive ITRC as it has massive problems of supply and low prices. The future will look even more daunting as the CMLV countries with China investments will produce more and they have cost advantages. The onus is on the present government and in particular the Agriculture Ministers to lay out meaningful reforms and incentives to reduce supply and switch more to down stream manufacturing instead of exporting of raw materials.    

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1 hour ago, halloween said:

Producers control supply, not demand.

Apparently, the Prayut believed his government could increase global prices through increases in domestic demand by ordering government agencies (ie., Ministries of Transportation, Defense and Tourism) to use more rubber (paid at higher than global market prices) and rubber finished products (paid at retail prices). Surprise - didn't work.

 

One factor causing lower global demand is innovation by rubber consuming countries away from natural rubber. That improves a nation's economic and political security.

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4 hours ago, halloween said:

I have a small problem with their basic concept - that the Agriculture Minister is responsible for low commodity prices on the world market.

Same issue as the rice farmers, don't keep doing the same thing if it doesn't make money anymore. Try something different, although blaming someone else is a lot easier.

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The Thai Rubber Authority are stock piling the rubber, while they wait for increasing prices. They buy cheap and want to make a proffit. Now is the high season in the north east. What we make now, in money. Is going to last through the stop season. Now the stock of rubber is so high, becorse Thai Rubber Authority  dont sell. Meaning prices are falling, in Thailand. So once again, the government and the government owned companies are steeling from the farmers. In India there is a lack for rubber. China had 2 factories that wanted to buy over 300.000 ton of rubber from Thailand. India wanted 150.000 ton. What happend with that? It was big news, and than everything whent quiet. It is clearly the incompetent agricultural department who is to blame. It was the government who back in the days told the farmers that rubber was the future. Now they just sit on their hands and wont take resposebility. Just thinking about making money for them self. Not for the farmers, not for the department but for their private pockets.

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19 minutes ago, Bendi said:

China had 2 factories that wanted to buy over 300.000 ton of rubber from Thailand. India wanted 150.000 ton. What happend with that?

From what I heard, the Chinese decided to buy from Cambodia. There again something the Minister can do with some intense lobbying and effort but alas didn’t happen. The Chinese is investing in rubber plantations in Cambodia, Laos, Vietnam and Mynmar. If the government still don’t react with some drastic reform and policies, we will lose the Chinese market which buys 40% of global natural rubber. 

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8 hours ago, Eric Loh said:

Thailand seats on the ITRC with Malaysia and Indonesia and have a majority of natural rubber production globally. It is of Thailand interest to make more efforts to negotiate for better control of supply. So far, the the ITRC lacks commitment and continuity. Malaysia and Indonesia are not pursuing this supply commitment because they have reduced their rubber plantation for other crops like palm and more down stream processing. Thailand is just the opposite with policies to increase plantations and to concentrate on primary processing for exports. Thailand needs to drive ITRC as it has massive problems of supply and low prices. The future will look even more daunting as the CMLV countries with China investments will produce more and they have cost advantages. The onus is on the present government and in particular the Agriculture Ministers to lay out meaningful reforms and incentives to reduce supply and switch more to down stream manufacturing instead of exporting of raw materials.    

I recall  this  current  government  announcing  assistance  to farmers who were  faced  with   non viable agricultural production due  to  low  prices and/or  inappropriate crop versus  land  use  to divert that  usage . 

Rubber  latex is one  of those  products.

The  lucrative  days  for  the  major  and  initial  plantation  owners  of  the  south  have  been progressively been affected   by   the  production  in other  areas by  people  who never  considered  the  prospect  of   over supply.

They  too are mostly   marginal in  income.

But  regardless of that  situation how  and  why is  it  that  those  who previously  had   very  substantial   incomes should  expect demands for State  handouts in  lieu of  market  prices be   met?

There is  no  surprise  they were  warned  off causing  problems over  an issue  that  realistically cannot  be  solved by ad infinitum  subsidies ! Such  measures would likely have  a more compounding  effect on  supply thus market  price then  calls  for   increased  subsidies..

 

 

 

 

 

 

 

 

 

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