Rubber farmers cancel planned protest after govt measures

[Lite Beer]

Rubber farmers cancel planned protest after govt measures
The Nation

BANGKOK: -- Prime Minister General Prayuth Chan-ocha yesterday claimed success in curbing a planned protest by rubber farmers in the South, after pledging to raise the minimum price of the commodity to Bt50 per kilogram, which is the current global rate.

Prayuth assigned the permanent secretary of the Agriculture and Cooperatives Ministry to meet with an international group from rubber-growing countries and said this was another of his efforts to raise the local rubber price.

Other measures Prayuth cited include research and development to increase the quality of Thai rubber, better management and ways to boost the value of Thai rubber products.

The PM was speaking after chairing a key meeting yesterday of the National Rubber Policy Board, which comprises representatives of rubber farmers.

He said the meeting was productive, and thanked the rubber growers for their cooperation and decision to call off the planned rally on October 8 by a large number of rubber growers from 16 provinces at Government House.

Prayuth said the rubber price was a national issue and announced "the national train on the rubber-price agenda".

"This is a single train, which is an express service, because the problem will be sorted out rapidly, and it will never derail."

There were three measures already in place to reduce price problems, Prayuth said. A huge sum had been quickly distributed to rubber farmers at a rate of Bt2,520 per rai (Bt15,750 per hectare), plus Bt5 billion was recently approved for members of rubber cooperatives, with such cooperatives expanded and granted the status of legal entities.

It is not easy to solve the price problem, he said, as rubber prices are dependent on global demand and supply. And he said the former would remain low for the next few years.

Yesterday's meeting agreed to accept 12 measures proposed by the ministry. Prayuth said he agreed with a measure to ensure value-added options for buyers, promotion of manufacture and sale of rubber bed mattresses, plus greater use of rubber pellets in road construction.

He said a policy to halve the number of rubber plantations from 500,000 currently would be adopted later, after controls on production volume proved effective.

Anant Lila, head of the Office of Agricultural Economics, said the 12 measures included a tax exemption for eight years to entitled farmers under Board of Investment assistance, the setting up of an industrial development institute for research and development, a policy to limit production volume, a capacity-building programme on technology transfer, and the promotion of local investment.

Source: http://www.nationmultimedia.com/national/Rubber-farmers-cancel-planned-protest-after-govt-m-30243699.html

-- The Nation 2014-09-20

[EricBerg]

"This is a single train, which is an express service, because the problem will be sorted out rapidly, and it will never derail."

A Thai train that never will derail...

[EricBerg]

deleted double post

Edited September 19, 2014 by EricBerg

[ezzra]

Here in Thailand, any group that makes enough noise and intimidations, always get what they

ask for or near enough, just to keep them quiet, which always open the door for abuse and

corruptions, which leads to investigations and finger pointing and people going to jail and governments

toppled down, and so it goes over and over again...

[Tatsujin]

Given the almost daily "derailments" here . . . I'd have to question the logic in stating that something here will never "derail".

[stevehaigh]

weren't they asking for 120b/kg when yinglack was in charge and planning to protest because she only offered then 100b/kg?

[Toknarok]

I thought the new powers that be promised to do away with popularist policies. If this isn't one I don't know what is.

[maoro2013]

Trouble is the farmers will not get the

Thb50/kg.

The price has averaged more than this all of 2014 but the farmers are only getting about thb20/kg

[thaiguzzi]

Trouble is the farmers will not get the

Thb50/kg.

The price has averaged more than this all of 2014 but the farmers are only getting about thb20/kg

I have a plantation, with 3 plots. I have worked the farm for 11 years, so i know what i'm talking about. You do not, and apparently cannot differentiate between cup rubber, latex, and sheet rubber. All 3 have very different prices. Sheet has been averaging anywhere between high 50's to mid 60's this year. Cup has been anywhere between mid 30's to low 20's. And yes, that is what the farmer gets, either sheet or cup prices. If cup was 45-50 baht per kg and sheet 90-100 baht per kg, everybody would be happy. This is'nt going to happen until at least end of 2015, possibly mid 2016, so, the only people who are making a killing in the meantime are the tire manufacturers. Rubber prices have collapsed from 3-4 years ago, anyone seen the price of tires drop substantially? Their profits must be up 100% min.

[Strangebrew]

In the picture look at his face you can see he is under tremendous amount of stress trying to clean up this mess he got. At least he is trying so give the man a break. Unless you think you can do better. Just do as he asks, And you might be surprised at what you get when he is done. It won't be the same old garbage as before and The new will be for benefit of all. I lived long time I know a honorable man when I see one.

[Eric Loh]

Didn't a populist policy caused the downfall of the previous government?

[rickirs]

The solution isn’t just the pledge of raising the minimum price of the commodity to Bt50 per kilogram.

Read the next part, “A huge sum had been quickly distributed to rubber farmers at a rate of Bt2,520 per rai (Bt15,750 per hectare), plus Bt5 billion was recently approved for members of rubber cooperatives, with such cooperatives expanded and granted the status of legal entities.”

This “huge sum” is not quantified and, more importantly, it seems to be personally authorized by the PM just prior to when the NLA approved 2015 budget takes effect. The result may be a further shortfall in the 2015 budget to absorb this NEW debt. Given the current administration’s propensity to throw money at issues to seemingly quell public disruptions, Thailand may find itself in a severe, self-inflicted failing economy long before the end of the 2015 budget period.

[rubl]

Didn't a populist policy caused the downfall of the previous government?

More specifically the RPPS which caused a 700++ billion shortfall and less than three years. Main problem being minimum price pledging not on global price level like now with rubber, but way above (think 50% ro more higher than global price level).

Here we talk about 5 billion plus what was paid per rai if rubber wood. All within the National Budget as well it would seem. Not in a non-revolving funds which requires seven years to pay of.

[rubl]

The solution isn’t just the pledge of raising the minimum price of the commodity to Bt50 per kilogram.

Read the next part, “A huge sum had been quickly distributed to rubber farmers at a rate of Bt2,520 per rai (Bt15,750 per hectare), plus Bt5 billion was recently approved for members of rubber cooperatives, with such cooperatives expanded and granted the status of legal entities.”

This “huge sum” is not quantified and, more importantly, it seems to be personally authorized by the PM just prior to when the NLA approved 2015 budget takes effect. The result may be a further shortfall in the 2015 budget to absorb this NEW debt. Given the current administration’s propensity to throw money at issues to seemingly quell public disruptions, Thailand may find itself in a severe, self-inflicted failing economy long before the end of the 2015 budget period.

Like you I'm puzzled. Mind you, if we knew how many rai of rubber there are in Thailand we could quickly calculate the total amount spent. Mind you, PM Prayuth might just refer to the promise given to farmers by the previous government.

2013-09-14

"Rubber farmers in Songkhla and other provinces have started registering for government aid as they are satisfied with the Bt2,520-per-rai fertiliser subsidy for up to 25 rai per farmer. Deputy Prime Minister Pol General Pracha Promnog quoted Amnuay Yutitham, a protest leader from Nakhon Si Thammarat's Tha Sala district, as saying that farmers were content with the new subsidy and had thus called off the huge rally planned for Saturday."

http://www.gupta-verlag.com/general/news/industry/13418/THAILAND-Farmers-sign-on-for-subsidies

2013-09-14

"Representatives from the Rubber Replanting Aid Fund and the rubber farmers network jointly discussed the government’s financial measures which grants Bt2,520 per rai tofarmers with the maximum of 25 rai (10 acres) per household for seven months, starting October 1."

http://globalrubbermarkets.com/12426/thailand-govts-assistance-package-accepted-rubber-farmers-nationwide.html

BTW it would seem that by now we have more rai of rubber wood in Isaan than down South. General Chavalit started this in 1989 as a move to eradicate poverty in that region and TRT really picked up the drive as important policy.

[Bosse137]

Where we live in NE,we have not seen or heard anything about any distributed money.

[rubl]

Still searching for acreage, but it would seem

1998 1.54 million hectares of rubber trees producing 2.16 million tonnes

2014 expectation 4 million tonnes.

[rubl]

Where we live in NE,we have not seen or heard anything about any distributed money.

2013-09-14

"Therdsak Sermsri, president of the National Rubber Growers Network, said the farmers accepted the Cabinet’s Tuesday decision on short-term assistance to them but proposed that some of the measures should be reviewed.

He said rubber farmers nationwide would be told to stop their demonstrations but he could not guarantee that protests would not be organised again in the future."

http://globalrubbermarkets.com/12426/thailand-govts-assistance-package-accepted-rubber-farmers-nationwide.html

Not sure the Yingluck government got around to paying what with their problems paying rice farmers, but PM Prayuth indicates a huge sum had been quickly distributed to rubber farmers at a rate of Bt2,520 per rai. Check with your local administration what happened. If forgotten you're still entitled, if money 'lost' PM Prayuth would definitely like to know.

Edited September 20, 2014 by rubl