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Agriculture minister to propose guaranteed rubber prices

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Agriculture minister to propose guaranteed rubber prices

 

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BANGKOK (NNT) - The Ministry of Agriculture and Cooperatives plans to propose to the cabinet guaranteed prices for rubber, to benefit the 1.4 million rubber farmers who have suffered losses for the last five years.

 

Agriculture Minister Chalermchai Sri-on said he plans to propose price the guarantee under the first phase of a price guaranteed project. All relevant sectors have held a meeting on the issue with the intent to raise the income of rubber farmers and reduce the negative effects of lowered rubber prices.

 

The guaranteed price is 60 baht per kilogram for raw rubber sheets, 57 baht per kilogram for fresh resin and 25 baht per kilogram for cup lumps of rubber. A volume of 20 kilograms of rubber is guaranteed per 0.06 hectares of plantation per month.

 

The measure will be implemented from October 2019 to September 2020 and rubber farmers may join the guaranteed price project on the condition that they register with the Rubber Authority of Thailand by August 12, 2019.

 

A total of about 1.4 million rubber farmers, 299,235 rubber cutters, Green Card holding, documented farmers and Pink Card holding, undocumented farmers are to be assisted under the project after they have sold their rubber at loss for over five years.

 

The agriculture minister said the measure calls for the identification of the farmers who are entitled to join the project, examination of their entitlements as well as assessment and gathering of related information, which will be submitted to the Bank for Agriculture and Agricultural Cooperatives, so that the bank can transfer the money to the rubber farmers’ accounts and notify such to the Rubber Authority of Thailand.

 

The project will be publicized from September 15 and the money will be delivered to the rubber farmers on December 15, 2019.

 

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" The guaranteed price is 60 baht per kilogram for raw rubber sheets, 57 baht per kilogram for fresh resin and 25 baht per kilogram for cup lumps of rubber. "

 

It would be interesting to know how "fresh resin" and "cup lumps" differ in terms of processing effort and whatnot (production cost). I gather that "cup lumps" can be dirty and contain undesirable detritus and plant diseases.

Instead of teaching how to fish simply give them fish. That should do it. 

3 hours ago, webfact said:

The Ministry of Agriculture and Cooperatives plans to propose to the cabinet guaranteed prices for rubber, to benefit the 1.4 million rubber farmers who have suffered losses for the last five years.

Could this effectively be a subsidy for the high baht. Might it be the rubber farmers can't sell/export their product because of the baht? The same is happening with rice.

Will there eventually be subsidies for all export products to cover losses by producers for any drop in sales due the the value of the baht? 

The big question is! Where is this country economically headed because of the baht? 

2 hours ago, Cadbury said:

Could this effectively be a subsidy for the high baht. Might it be the rubber farmers can't sell/export their product because of the baht? The same is happening with rice.

Will there eventually be subsidies for all export products to cover losses by producers for any drop in sales due the the value of the baht? 

The big question is! Where is this country economically headed because of the baht? 

During Abhisit's premiership rubber was around 160B per kilo if memory serves correct. Since then China's industry has contracted plus they also bought tracts of land in Burma and Laos for their own plantations which probably matured 3 or 4 years ago.  Various ideas have been put forward to increase domestic sales.  The rise in the Baht doubtless has not helped their cause.  It was Thaksins government that told farmers to plant rubber in the first place. They have since been told to cut them down and sell the wood to to stop oversupply. 

2 minutes ago, Dellboy218 said:

It was Thaksins government that told farmers to plant rubber in the first place.

They did not need the Thaksin government to tell them what to do.

Just look at what is happening everywhere in Thailand;
someone has an original idea, puts it into practice and you can be sure that in the next month ten others are doing the same thing in the same street;
prices will collapse because a clever little will want to sell more and it will snowball ..
  of course everyone is losers.

5 hours ago, Damrongsak said:

" The guaranteed price is 60 baht per kilogram for raw rubber sheets, 57 baht per kilogram for fresh resin and 25 baht per kilogram for cup lumps of rubber. "

 

It would be interesting to know how "fresh resin" and "cup lumps" differ in terms of processing effort and whatnot (production cost). I gather that "cup lumps" can be dirty and contain undesirable detritus and plant diseases.

cup lumps is what you get when you tap the tree and it drains into a cup attached to the tree by a wire hanger.

You tap the tree, let it drain for several hours and then come back and add some formic acid to solidify the rubber, after repeated tappings the cup will be full and you bag them up and sell them for the lower price.

Sheet rubber is made by collecting the raw rubber from tapping every day and then the rubbers water content is reduced by adding chemicals and then running the rubber through a wringer type setup to make a sheet, which is then smoked dry.

This results in a loss of weight of about half due to water content reduction, so the price is roughly twice as much 

7 hours ago, webfact said:

The guaranteed price is 60 baht per kilogram for raw rubber sheets

A very nice (albeit expensive subsidy).

As of 2019-08-15:

According to the Rubber Authority of Thailand's website, the price of raw rubber sheets was around Bt37-.9-Bt39.20 per kilogram while the latex price was Bt39.20 per kilogram.

https://www.nationthailand.com/news/30374806

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Here is some grasshopper advice from a man of wisdom.

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My wife when starting out as a Thai school teacher invested some of her money in land and rubber trees so she'll be happy. Though promises are not the same as delivery !

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