Thai govt to brace for 7.9 billion baht loss in stockpiled rubber sales

[webfact]

Government to brace for 7.9 billion baht loss in stockpiled rubber sales

BANGKOK, 21 May 2014 (NNT) - Mr. Chanachai Plengthanasiriwat, Director of the Rubber Estate Organization (REO), said that his agency is preparing necessary document to present to the Administrative Court to fight a petition filed by the private sector for the court’s protection against the government’s move to sell 208,000 tons of stockpiled rubber it has bought from planters to stabilize rubber price.

The scheme was established way back when Mr. Nuttawut Saikuea was the Agriculture Minister. The REO-planned release has sparked a fear that the stockpiles would further pull the rubber price down when dumped into the market.

The Director said the price of rubber would be affected regardless of whether or not the Administrative Court would accept the petition and grant immunity to the private sector when it deliberates the issue on May 28th. He indicated the REO has yet to appoint a subcommittee on rubber stockpiles management to supervise the trading transactions.

The rubber price stabilization program had spent 22 billion baht to buy 208,000 tons of rubber from farmers at the optimum price tag of 106 baht per KG. If the rubber is dumped into the market now, the scheme would cost the administration a loss of 7.9 billion baht as the market price of rubber is currently at 68 baht a kilo.

According to the REO director, proceeds from the sales will be used to pay back the loan the project has taken from the Bank for Agriculture and Agricultural Cooperatives. The price difference will be compensated by the central budget once a new government is established.


-- NNT 2014-05-21

[sjjmmi]

Rice scam, Rubber scam Thailand the Hub of scam's

[iancnx]

It's only £150m sterling, nothing compared to the rice losses. So I suspect no one will be held accountable!

[airconsult]

Darn, I bet Nuttawat regrets that scheme now - considering Suthep's family are big rubber buyers in the south and supporting the price would have benefited him more than the farmers.

What do they say? "No good deed will go unpunished"

[Bluespunk]

It's only £150m sterling, nothing compared to the rice losses. So I suspect no one will be held accountable!

So just the same as the rice scheme then.

[Civil War]

This is normally the time of year when rubber is at its highest, just before the rains when the plantations have been asleep for the whole dry season and the rubber availability is at its lowest.

Once the rains come, the tapping starts up again and the prices drop again. This will also be a double drop if the government dumps a load of rubber into the market before the farmers can process and cure their own.

Yet another display of inept governing on behalf of the PTP who think they can just throw money at a problem and make it go away, then it ends up destroying livelihoods.

If you think this is bad... wait for the next 20 million tonnes of rice to start coming out from September..... That is going to create such a mega shitstorm.

I want this government out... But half of me wants them to be around to reap the carnage of their actions among their voters.

[Mentors]

They never paid a price nearly as 106 Baht in the last 12 month.

[Civil War]

It's only £150m sterling, nothing compared to the rice losses. So I suspect no one will be held accountable!

It is the effect it has on prices in future harvests that affects the farmers directly and just rolls the problem over to the next year where the problem becomes massively increased.

[ChrisY1]

Seems as though way back, someone had planned to make a killing on rubber......but the plan bounced!

[LivinLOS]

And to think.. Before Suthep started these demonstrations he was out there demanding the rubber subsidy be given to those poor southern farmers (much like himself).

[Now or Never]

Here we go again...... another PTP mess

[givenall]

Rice scam, Rubber scam Thailand the Hub of scam's

Some one should check Thaksin's family accounts to see if it is growing excessively

[ggold]

And to think.. Before Suthep started these demonstrations he was out there demanding the rubber subsidy be given to those poor southern farmers (much like himself).

And it looks like PTP obliged him!

[srsv1238]

This is normally the time of year when rubber is at its highest, just before the rains when the plantations have been asleep for the whole dry season and the rubber availability is at its lowest.

Once the rains come, the tapping starts up again and the prices drop again. This will also be a double drop if the government dumps a load of rubber into the market before the farmers can process and cure their own.

Yet another display of inept governing on behalf of the PTP who think they can just throw money at a problem and make it go away, then it ends up destroying livelihoods.

If you think this is bad... wait for the next 20 million tonnes of rice to start coming out from September..... That is going to create such a mega shitstorm.

I want this government out... But half of me wants them to be around to reap the carnage of their actions among their voters.

than just vote them out.

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[huanga]

Thailand - the hub of R&R

Rest and relaxation

Rice & rubber

Retards & rebuttal

Reds & rubbish

....

[LivinLOS]

wrong thread..

[Thai at Heart]

I am sure the middlemen are laughing all the way to the bank.

[iancnx]

Seems as though way back, someone had planned to make a killing on rubber......but the plan bounced!

Maybe bounced a little, but I suspect when all that Chinese rubber (that was planted a few years ago) matures and comes to the market, Thai rubber will collapse completely and could easily match the rice debacle, if not exceed it, in terms of baht investment. From recollection, land costs, the planting, 7 yrs fertiliser, plantation security and management adds up to a huge speculative investment based on the global market. I don't have the facts to hand but Chinese plantations will exceed many hundred times larger land area than Thailand could ever wish to produce. Ultimately the Chinese will play a major role in the global market. Next year or the year after should see this lot capitulate. Poor misinformed Thai farmers out to make an easy buck, and I would guess much of the investment is debt.

[darren84310]

They needed all that rubber to print the cheques on that they gave to the rice farmers!!!!

[cobbler]

Amazing.Wow the gov made corruption on the buying of the yang and then the mystery fire burnt who knows how many tons.For sure a cover up for the corruption money.So there couldnt be an exact amount of yang bought.

Then she would have sold it and made money at that time too.Bad luck for her she got kickedout before then.

Oh well still made billions from all the other projects she did with the borrowed billions from imf

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[Lupatria]

Looks like the predictions of the Myanmar fortune teller's advice to the Thaksin family regarding good luck in gambling were completely wrong.

[JRSoul]

Perhaps now they can make the condoms a bit larger.

[Strangebrew]

And here I thought all this hoopla about making condom larger in Thailand would have drove the price of rubber through the roof. I guess the members aren't as large as first thought.

[shaurene]

Well, Well another skeleton out of the cub bard, wonder how many other products are hidden by the politicians planning their retirement pensions.

[belg]

thainess economics :

buy high, sell low

whooooooooooooot ?

[Dogmatix]

Time for Nattawut to face impeachment, criminal and civil charges over this and the rice pledging since he moved to the Commerce Ministry after setting up this scam at the Agricultural Ministry.

[lvr181]

Perhaps now they can make the condoms a bit larger.

For dick heads?

[cobbler]

Well, Well another skeleton out of the cub bard, wonder how many other products are hidden by the politicians planning their retirement pensions.

The answer to that is simple.Any government project eg flood control, rice buying from the farmers , ect ect ecttraaaa.

Thai polititians pay millions to get a good seat in politics.Dont kid yourself they do it for noth7ng.They all make billions.FACT

CHEERS Cobbler

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[Thai at Heart]

Seems as though way back, someone had planned to make a killing on rubber......but the plan bounced!

Maybe bounced a little, but I suspect when all that Chinese rubber (that was planted a few years ago) matures and comes to the market, Thai rubber will collapse completely and could easily match the rice debacle, if not exceed it, in terms of baht investment. From recollection, land costs, the planting, 7 yrs fertiliser, plantation security and management adds up to a huge speculative investment based on the global market. I don't have the facts to hand but Chinese plantations will exceed many hundred times larger land area than Thailand could ever wish to produce. Ultimately the Chinese will play a major role in the global market. Next year or the year after should see this lot capitulate. Poor misinformed Thai farmers out to make an easy buck, and I would guess much of the investment is debt.

Just wait until the glut of Thai rubber all comes to market from the plantings over the last decade in isaan.

[cobbler]

Not to mention the 10s of 1000s of rai planted in the national parks. I know in this area there are a LOT farkin LOT of rubber trees in national parks.Most of it owned by national park bosses and polititions and border patrol bosses.

Cheers Cobbler.

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