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

[Strangebrew]

Like the three R's here Rice, Rubber, and Ripoff's

[valvenus]

8 Billion Baht loss when Red Shirt Leader Natthawut was running things as Yingluck's Cabinet Minister.

How very unsurprising.

[valvenus]

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

Especially the multiple-indicted from 2007, 2009, and 2010 Natthawut who was running the rubber scam, when not fulfilling his primary duties as Red Shirt Leader.

[Seastallion]

Is my maths that bad?? I get 38 baht drop in price, times 208,000 tonnes = 7,904,000 or 7.9 million. The article says billion. So, the earlier post saying 150 million GBP should be adjusted down to 144,000 GBP

Not as bad as at first glance.

But it's the flooding of the market that is worrisome.

Edited May 22, 2014 by Seastallion

[cobbler]

Pretending to love the issan people so much while robbing them blind.Crippling poor rice farmers.Im surprised these people can stay here.Not surprising Farksin had to leave.

Sent from my SM-T315T using Thaivisa Connect Thailand mobile app

[Scotswahay]

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.

Where on earth do they get their figures from??? My wife & I have a rubber plantation In Loei & I can assure you there is nobody getting anywhere near 68 baht/Kg and haven't had for over a year. The current price here is 28 baht/Kg. People I know about 150 Km south of us are lucky to get 22 baht/Kg. We haven't opened our trees this season (we have around 700) for the simple reason that we don't want to put in so much work for a pittance of an income. Macadamia nuts or Rambutan or other fruit trees would give us a far easier income & we will have lots of timber from our rubber trees to sell. So that's our plan.

[Mosha]

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

That price was for their friends. All others were told your rubber is poor quality.

[whybother]

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"

If they're buying rubber, they would want the price to be cheap.

But I thought they were into palm oil?

[draftvader]

How will they "bounce back" from this one?

Sent from my HTC Desire using Thaivisa Connect Thailand mobile app

[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"

If they're buying rubber, they would want the price to be cheap.

But I thought they were into palm oil?

Palm oil and rubber - it's good to be the middleman when the govt ends up supporting the open market price by buying - you get to sell to the government at a higher price than market, and when the scheme goes kaput you buy it back for less, than resell on open market.

With that in mind - watch what might happen to the rice stockpile if you get an appointed government. They'll sell it to the rice brokers for less than it was purchased for, then the brokers will sell it internationally for much more. But that's OT.

[cobbler]

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.

Where on earth do they get their figures from??? My wife & I have a rubber plantation In Loei & I can assure you there is nobody getting anywhere near 68 baht/Kg and haven't had for over a year. The current price here is 28 baht/Kg. People I know about 150 Km south of us are lucky to get 22 baht/Kg. We haven't opened our trees this season (we have around 700) for the simple reason that we don't want to put in so much work for a pittance of an income. Macadamia nuts or Rambutan or other fruit trees would give us a far easier income & we will have lots of timber from our rubber trees to sell. So that's our plan.

Scotswayhay.I think thats a smart move.Go to your local kings project and ask them what grows best in your area.The king is the only person in thailand who cares about farmers.Not polititions who want to make fast corruption money.

Cheers cobbler

Sent from my SM-T315T using Thaivisa Connect Thailand mobile app