NCPO to increase rubber prices, carefully releasing rubber stocks

[webfact]

NCPO to increase rubber prices, carefully releasing rubber stocks
By Digital Content



BANGKOK, Aug 27 -- Col Winthai Suvaree, deputy spokesman of the National Council for Peace and Order (NCPO), allayed farmers' concerns that the release of government rubber would further lower rubber prices.

He gave assurances that relevant organizations would manage rubber prices appropriately.

Col Winthai said that the Natural Rubber Policy Committee would plan the stocked rubber release carefully and take into consideration all possible impacts, especially those on present rubber prices.

"Initially I was informed that the release, if any, would be conducted gradually with limited amounts. I am confident that there will not be any impact on present rubber prices," Col Winthai said.

He also said that the NCPO and other concerned organizations would try to achieve appropriate rubber prices soon and immediate and long-term measures were planned.

Cooperation from all concerned parties is needed to guarantee fair returns for rubber growers, he said.

Long-term measures include finance for farmer organizations' and general operators' businesses to process rubber and establishing a rubber research institute to plan comprehensive businesses relating to rubber.

Yesterday the NCPO allocated Bt5.9 billion to improve the national rubber industry in the next ten years as sought by the Natural Rubber Policy Committee.

It plans to end holding excessive rubber stocks, increase the liquidity of rubber growers, and support integrated rubber research. (MCOT online news)


-- TNA 2014-08-27

[Thailand]

A rubber pledging scheme perhaps?

[chotthee]

A rubber pledging scheme perhaps?

Unlike the corrupted Yingluck rice scheme, this good Prayuth rubber scheme is really to help real Thai people.

[Bender]

time to build warehouse

[nojoma]

is the concept of supply and demand setting prices that difficult to understand in Thailand?

[DrLom]

time to build warehouse

The cheques would bounce.

[DrLom]

NCPO to increase rubber prices, carefully releasing rubber stocks

Durex, eat your heart out.

[JesseFrank]

So the Thais think once again that they gonna control world market prices ?

I thought things had changed sine May 22nd.

[givenall]

<script type='text/javascript'>window.mod_pagespeed_start = Number(new Date());</script>

A rubber pledging scheme perhaps?

Rubber is a commodity in the international market and if your price are too high they go to your competitors . Additionally there has been a lot of studies to replace the rubber anyways, so if you want to dig your own grave then be my guest

[surangw]

does the actual rubber on hand match the inventory sheets ?

[Jeremy50]

Market should be able to absorb the impact of the release of rubber stocks. Prices likely to rebound in a predictable way.

[Bosse137]

My wife has her income from our,hrmm,her,rubbertrees.Although it isn´t fun to see the price getting lower every two weeks when we sell,it was to be expected to happen.Higher output-lower demand;what can you expect! To us,we still see it as a better commodity than most others,and if one can forget the crazy high price some years ago,one can still live ok on it.That is,if one can do the work oneself,instead of paying others 50% of the income!

[carstenp]

My wife has her income from our,hrmm,her,rubbertrees.Although it isn´t fun to see the price getting lower every two weeks when we sell,it was to be expected to happen.Higher output-lower demand;what can you expect! To us,we still see it as a better commodity than most others,and if one can forget the crazy high price some years ago,one can still live ok on it.That is,if one can do the work oneself,instead of paying others 50% of the income!

I don't what region your are on, but my landlady told me today, that middle man buyer won't buy any rubber for the next 6 month, so they don't work anymore. No tapering. This is northeast Thailand

If this is true, much more people will have problems than the news say

[Bulldozer Dawn]

Price elasticity?

[surangw]

Price elasticity?

no doubt it will snap back and sting the planners

[carstenp]

Price elasticity?

no doubt it will snap back and sting the planners

I was thinking the same. Maybe a "new" way to try to get rubber price up. Like the rice schemes

No rubber on marked, and the price will raise

[carstenp]

My wife has her income from our,hrmm,her,rubbertrees.Although it isn´t fun to see the price getting lower every two weeks when we sell,it was to be expected to happen.Higher output-lower demand;what can you expect! To us,we still see it as a better commodity than most others,and if one can forget the crazy high price some years ago,one can still live ok on it.That is,if one can do the work oneself,instead of paying others 50% of the income!

I don't what region your are on, but my landlady told me today, that middle man buyer won't buy any rubber for the next 6 month, so they don't work anymore. No tapering. This is northeast Thailand

If this is true, much more people will have problems than the news say

Funny you would say that.Sister in law told my wife,that the government was going to demand that rubbers halt production for 6 months or the government will close the factories... Do not believe it though;wonder where this rumor comes from? BTW,we live in northeast too.

Just got it confirmed from landlady. It's the middleman there has told here about it. Seems like they has to stop buying, cause demand from government. This is very strange

Edited August 27, 2014 by carstenp

[tx22cb]

The Military couldn't even control the price of Lottery tickets at 80 Baht, when they have a monopoly on Supply and a limited market (Thailand), so what chance do they have with a global commodity?

Soon they will discover that International Markets are not as accommodating as bent Arms Dealers.

[carstenp]

The Military couldn't even control the price of Lottery tickets at 80 Baht, when they have a monopoly on Supply and a limited market (Thailand), so what chance do they have with a global commodity?

Soon they will discover that International Markets are not as accommodating as bent Arms Dealers.

Hopefully they are not going to do the same mistake as ####### did before! Try to manipulate the global marked.

[tonbridgebrit]

Thailand can't control the world market price for rubber. But it can set a fixed price in Thailand itself. Once the price has been fixed, and if they reduce or ban any rubber imports, well, companies will have to buy at the set fixed price. Why import rubber when there is a supposed glut at home ?

[Thai at Heart]

<script type='text/javascript'>window.mod_pagespeed_start = Number(new Date());</script>

A rubber pledging scheme perhaps?

Rubber is a commodity in the international market and if your price are too high they go to your competitors . Additionally there has been a lot of studies to replace the rubber anyways, so if you want to dig your own grave then be my guest

At least rubber isn't quite as perishable as rice. So the dynamics aren't quite the same

[Bosse137]

carstenp "No rubber on the market and the price will rice" Yes;good for farmers in the other countries of course.And what will happen when Thai finally will be able to sell their stock of rubber( many will go on and tap)?! Price will sink to bottom and we are back to square one.Brilliant!!!!

[Bluespunk]

"NCPO to increase rubber prices, carefully releasing rubber stocks"

Problem with this headline is that nowhere in the article does it say they will raise prices. Lots of soothing noises about protecting farmers, controlling the amount of extra rubber released into market, appropriate action, etc but nothing about raising prices.

[Bluespunk]

A rubber pledging scheme perhaps?

What are they pledging to do? Release stocks appropriately? What's wrong with that?

[Bluespunk]

So the Thais think once again that they gonna control world market prices ?

I thought things had changed sine May 22nd.

Where does it say they will do that?

[Bluespunk]

time to build warehouse

Why? They are going to release more rubber from their reserves onto the market. Why will they need more warehouses?

"It plans to end holding excessive rubber stocks"

Edited August 27, 2014 by Bluespunk

[alant]

A rubber pledging scheme perhaps?

Unlike the corrupted Yingluck rice scheme, this good Prayuth rubber scheme is really to help real Thai people.

Ha, Yingluck strikes again...

[JesseFrank]

So the Thais think once again that they gonna control world market prices ?

I thought things had changed sine May 22nd.

Where does it say they will do that?

Well it doesn't take a rocket scientist to know that if more of a product, from which there already is a glut on the worldmarket, is released it will negatively influence market prices.

Yet I read the following typical Thai statement

I am confident that there will not be any impact on present rubber prices," Col Winthai said.

[Always18]

is the concept of supply and demand setting prices that difficult to understand in Thailand?

No, except that the Thai version is "we have the supply and we demand that you pay our price"

There is a long and difficult road ahead for Thailand when it finally admits to itself that it cannot control the world price of, well, anything actually!

[tonbridgebrit]

https://uk.finance.yahoo.com/news/dutch-farmers-dump-tonnes-produce-111755805.html

Who wants to protest against the Dutch farmers getting compensation because of the plunge in prices ? Who wants to see a load of Dutch farmers going into bankruptcy ?

The EU is a club/group that protects it's own people. That's what countries/clubs/groups are SUPPOSE to do !
But in Thailand, some people reckon that the if the 'free market' is going to bankrupt some farmers, well, that's okay.