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Yukol: Thailand can be ASEAN rubber hub


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Yukol: Thailand can be ASEAN rubber hub

BANGKOK, 12 September 2013 (NNT) – The Minister of Agriculture and Cooperatives believes that Thailand can be the para rubber center of ASEAN given its logistic advantages, while insisting the government should not intervene in the rubber market.


During a seminar on the future of Thai para rubber industry, Agriculture Minister Yukol Limlamthong said he believed in Thailand’s capability in becoming the para rubber hub of the region, citing its geographical advantage which easily connects the country to other ASEAN members.

To become ASEAN’s rubber center, he said Thailand had to improve its production and quality of rubber and focus more on processed rubber goods which would in turn create an added-value to the products. He also cited tax relaxation policy as one of the factors that will trigger the rubber industry and attract more investors to the country.

He also mentioned about the current price conflict, saying the government should not intervene in the rubber market, but will instead take care of the price situation according to reality in order not to distort the market mechanism.

The minister said he had assigned the Office of the Rubber Replanting Aid Fund to increase the bargaining power of rubber growers by encouraging them to form a group and set domestic prices for Thai rubber in the world market.

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No that it will happen, but does he really think rubber is going to be worth more or less in a domestic market? As it is the world market that sets the price there would be incentive to buy above that price. This is the problem they had with the rice scam.

World markets love it when governments interfere with the price, it means they make more money betting against that government. No government can control prices.

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No that it will happen, but does he really think rubber is going to be worth more or less in a domestic market? As it is the world market that sets the price there would be incentive to buy above that price. This is the problem they had with the rice scam.

World markets love it when governments interfere with the price, it means they make more money betting against that government. No government can control prices.

Well in the short term they could. But other countries will start to farm more rubber and natural rubber can be substituted in some applications.

So it might be possible for a couple of years and than everything would be far worse than before (more production and less demand).

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It could but then could means nothing, as a casual observer I would have thought that Malaysia will have something to say about that along with Singapore which has the worlds second largest container port to export.

The internal market, has been mentioned above looks strong along the eastern seaboard although I would strongly advise against any form of recycling with such products.

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Personally I wish the politicians here would concentrate on running the country instead of trying to turn it into the world centre for everything :( You can,t make a silk purse out of a pig,s ear, so stop trying to be something you are obviously incapable of and just try running the country for a change.

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If I had a baht for every time the government announced its intentions to be a hub of this or a hub of that and proceeded to do nothing about it and I had a baht for every crackdown that was announced that never ever happened, I could buy all the rice and rubber and make everybody rich in 6 months.

Come to think of it - that's a better financial strategy than they have!

Sent from my Galaxy Nexus using Thaivisa Connect Thailand mobile app

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The Government promoted areas that had never grew rubber before,

the North and Issan, giving free trees ,did it not occur to any more

when you massively increase production, theres going to be oversupply

resulting in a drop in the price of rubber

The rubber tappers where earning very good money when China could

not get enough of it,now the market is not so good,price is down,so they

expect the Government to help them,next the Government will be helping

all the little shops ,when a Tesco/Lotus opens up in the area,who going

to be next looking for handouts?,its a crazy way to run a Country.

regards Worgeordie

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Good to hear our sage politicians keep bouncing back with new 'hubs'. (bouncing = rubber, get it?)

When did they first learn that word 'hub' ?

If you have a hub, then it's likely you have spokes and a rim, and even an axle from the hub leading to another wheel.

I had a joke somewhere about retread tires, but the punchline slipped my mind.

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Actually most of the posters here are incorrect. Thailand already is the largest exporter of rubber in the world. If I had to guess I'd already say Thailand is (and has been for decades) a rubber hub.

Exactly. I don't know what more they can do. They are the centre anyway. Of course the dominant companies aren't really Thai and they also dominate Malaysia and Indonesia.

So they aren't in control of their own destiny what so anyway

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The OP article is absolutely correct. Thailand, being low tech as usual, exports most of its rubber in raw forms such as liquid and sheets. There is huge value-added opportunity to actually manufacture valuable products before exporting.

What it is incorrect about is that outside investors could be enticed to do this. Thailand's protectionist policies make it very difficult for foreigners to own a business here. At the least Thailand needs to create some economic zones where foreigners could own land and businesses.

But the opportunity to manufacture rubber goods for export is there and should be exploited. According to the news source which must not be quoted, rubber is Thailand's 3rd most valuable export. What would it be if that rubber was in finished form?

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Personally I wish the politicians here would concentrate on running the country instead of trying to turn it into the world centre for everything sad.png

You know when you get those Thaier than Thais who instruct posters to go home if they don't like it here. I would like to see a campaign that urges Thai politicians to go back to China.

But they never would, they would be eaten alive.

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The OP article is absolutely correct. Thailand, being low tech as usual, exports most of its rubber in raw forms such as liquid and sheets. There is huge value-added opportunity to actually manufacture valuable products before exporting.

What it is incorrect about is that outside investors could be enticed to do this. Thailand's protectionist policies make it very difficult for foreigners to own a business here. At the least Thailand needs to create some economic zones where foreigners could own land and businesses.

But the opportunity to manufacture rubber goods for export is there and should be exploited. According to the news source which must not be quoted, rubber is Thailand's 3rd most valuable export. What would it be if that rubber was in finished form?

Not true. Huge amounts go into car and tyres and things like latex gloves etc.

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Wait for the sugar cane farmers blocking the roadsthumbsup.gif

Yes, and I mentioned that in some earlier posts. Yesterday rice, today rubber. Tomorrow; sugar, fruit, corn, coconuts, veges, .....the list could go on.

It's like a disfunctional family with 22 children, where the biggest kid is given the most toys. A week later, the 2nd biggest kid gets a load of toys. Soon, all the kids are clamoring for favored treatment.

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Actually most of the posters here are incorrect. Thailand already is the largest exporter of rubber in the world. If I had to guess I'd already say Thailand is (and has been for decades) a rubber hub.

Exactly. I don't know what more they can do. They are the centre anyway. Of course the dominant companies aren't really Thai and they also dominate Malaysia and Indonesia.

So they aren't in control of their own destiny what so anyway

True, but the profits from rubber may fade. New airless polyurethane tires are now being introduced and may appear on new cars in the near future. The old poly tires are totally recyclable.

Edited by Nooky2
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Actually most of the posters here are incorrect. Thailand already is the largest exporter of rubber in the world. If I had to guess I'd already say Thailand is (and has been for decades) a rubber hub. 

All this hubbing is really quite tyring.

Sent from my Galaxy Nexus using Thaivisa Connect Thailand mobile app

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