Up The Price Of Rubber, Demand Farmers: Thailand

[webfact]

PROTEST

Up the price of rubber, demand farmers

The Nation

Rubber growers in the southern province of Songkhla were set to travel to the capital on Tuesday morning to join forces with rubber growers nationwide who are calling on the government to help shore up rubber prices to Bt120 per kilogram.

At a rally yesterday off an Asia Route section, an angry motorist opened fire on gatherers who blocked the route causing heavy traffic congestion. The shooting wounded four people including a policeman. The shooter reportedly drove a black Toyota Vios sedan with Kor Kai-Khor Khai 9694 registered in Songkhla.

Growers gathered in Songkhla before leaving for the premier's residence in Bangkok with latexladen pickup trucks as part of their caravan. They plan to pour the latex in front of Prime Minister Yingluck Shinawatra's home if the problem of the falling rubber price is not addressed.

Crowd-control police have been dispatched to maintain order at the intersection where the protesters are meeting.

Meanwhile, Yingluck said talks are proceeding with the rubber growers to solve the price problem.

Chayant Sangkhapaitoon, coordinator of the network of rubber growers in the southern region on Monday said para rubber prices fell from Bt100 per kilo to just Bt80, where they remain.

Rubber growers from the northeast, the north, the central region and the east will join the protest at the premier's home, as the demand was made to the government almost three months ago and there has as yet been no response, he added.

The growers have threatened to prolong their protest unless the price reaches Bt120/kg.

Sitthiporn Jariyapong, chairman of the Surat Thani Farmers Council, said he disagreed with the plan to pour latex in front of the house of the prime minister.

However, rubber farmers from Surat Thani will also join the protest. He said the farmers would gather at the Surat Thani Cooperative at noon Wednesday before heading to the prime minister's residence.

Sitthiporn said the world rubber market price is now Bt140 to Bt150 per kg but Thai middlemen had forced the Thai prices down to only Bt80 to Bt90 and were selling the rubber to Malaysia so as to benefit from high margins.

In Satun, the rubber farmers, led by Satun Rubber Farmers Cooperative chairman Chamnarn Mektrong, gathered at an intersection in Kuan Kalong district at 11.30pm.

About 100 of them travelled in some 60 vehicles to Hat Yai to join the rubber farmers there before heading to Bangkok.

-- The Nation 2012-01-11

[haveaniceday]

If they can organize a protest, why don't they just make a co-op and bypass the middle man ?

[Soupdragon]

Thai Rak Thai ?

Thai bends his countrymen over and shafts them seems more accurate.

[Ricardo]

PM-Yingluck must take some comfort from the fact, that liquid-latex is unlikely to be infected with HIV, unlike the libation poured on her predecessor's walls & front-gate, by her friends & associates.

[Pib]

The worldwide price of rubber has been falling for almost the last year...the commodity of rubber is just in a bear market. So, any fix that the Thai govt attempts will have to be a subsidy (i.e., tax dollars give away).

[whybother]

The worldwide price of rubber has been falling for almost the last year...the commodity of rubber is just in a bear market. So, any fix that the Thai govt attempts will have to be a subsidy (i.e., tax dollars give away).

They can do it for rice, why not rubber?

It's a slippery slope.

Edited January 11, 2012 by whybother

[Moruya]

The worldwide price of rubber has been falling for almost the last year...the commodity of rubber is just in a bear market. So, any fix that the Thai govt attempts will have to be a subsidy (i.e., tax dollars give away).

They can do it for rice, why not rubber?

It's a slippery slope.

It is indeed a slippery slope. The precedent has been set!

[spidermike007]

If they can organize a protest, why don't they just make a co-op and bypass the middle man ?

Exactly. A little creativity is in order. Too much to ask? Well, someone has to take charge. Why let some fat middle man get rich? It is always a good thing for nearly everyone concerned, if the middle man is excluded.

[bigbamboo]

The rubber business is tired of this. It needs to erase it's losses and bounce back.

Edited January 11, 2012 by bigbamboo

[David48]

The rubber business is tired of this. It needs to erase it's losses and bounce back.

Come on BigBamboo ... that's stretching it a bit !

Seriously though ... how can the government assist or intervene in a commodity which is traded freely on the world market in which the government is neither a buyer, seller or price controller.

'haveaniceday's suggestion of a co-op seems to be a better business solution if the price being received by the farmers is deemed to low and the 'middle man's costs to high.

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Edited January 11, 2012 by David48

[crazydrummerpauly]

The worldwide price of rubber has been falling for almost the last year...the commodity of rubber is just in a bear market. So, any fix that the Thai govt attempts will have to be a subsidy (i.e., tax dollars give away).

And there is a story doing the rounds here in the north-east that the Chinese are planning to plant huge numbers of rubber-trees on land they have in Laos, (or already have) which will presumably push the price even lower unless demand outstrips the total output. Is this an urban myth (rural in this case!) - or does anyone have hard facts ?

[peridot]

According to the Rubber Board of India, the international price in Bangkok today, January 11th, is 107 baht per kilo.

[whybother]

According to the Rubber Board of India, the international price in Bangkok today, January 11th, is 107 baht per kilo.

Get ready for statements from the government claiming that the world price rises are their doing.

[jamescollister]

Again lots of mis information going round. The Government is in fact a large buyer and seller of rubber. They the Government imposed a 5 Baht a kilo levy on rubber exports, meaning the farmers get 5 Baht less. This was to have been used to support prices if they dropped. Hasn't happened , but the levy stays.

This middle man making the big money is another myth. We sold RSS today 90 Baht a kilo. Today's price for FOB [free on board ] RSS is 108 Baht a kilo. So after transport, handling, warehousing, paper work and the levy are removed, don't think there is a big profit per kilo. It's all about small margins and big turn over.

As for the Lao thing yes the Chinese are planting, but so is Goodyear in Cambodia. Is there too much rubber and that's keeping the prices down, no. Rubber is bought by commodity traders on the futures market, unfortunately no one knows the future and the EU could turn up their toes and send the markets crashing. No one wants to be left holding millions of tons of rubber or any other commodity for that matter. It's the free market, if things don't get worse, but better there will be a shortage of rubber this year and the price will go through the roof, but I don't have a crystal ball, my as well toss a coin. Jim

[blackadder]

Yes, if the price of Thai baht went down 10-15%, it would solve many problems.

Devaluation of money is a safe play in times of crisis.

[Ricardo]

The rubber business is tired of this. It needs to erase it's losses and bounce back.

Come on BigBamboo ... that's stretching it a bit !

Seriously though ... how can the government assist or intervene in a commodity which is traded freely on the world market in which the government is neither a buyer, seller or price controller.

'haveaniceday's suggestion of a co-op seems to be a better business solution if the price being received by the farmers is deemed to low and the 'middle man's costs to high.

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I believe that demand for rubber is fairly elastic, and the producers should band together, as suggested.

[harrry]

Cannot be too pricy or the farmers wouldn't waste theirs on the driveway.

[Bosse137]

Three years ago I got 40 Baht/kg...Now,80 is not enough..Well,well...

[David48]

Again lots of mis information going round. Jim

Great post and thanks for clearing the mis-understandings.

Have pm'ed you

[Bagwan]

Well the price of rubbers hasn't changed at my local 711.

[longtom]

Well the price of rubbers hasn't changed at my local 711.

They don't want to hike the price, but I heard they plan to make them 2 inches shorter soon.

[Briggsy]

If they can organize a protest, why don't they just make a co-op and bypass the middle man ?

Who do you think makes up the govt?