Thai rubber farmers want more than a subsidy, suspect graft

[webfact]

Farmers want more than a subsidy, suspect graft
The Nation

Call for check on rubber storage sites similar to rice-pledging scheme

BANGKOK: -- LEADERS OF rubber farmers in the South have expressed disappointment with the government subsidy of Bt1,000 per rai, limited to a maximum of 15 rai each.

Tossapol Kwanrod, chairman of the rubber and palm oil farmers' network in 16 southern provinces, said the government had ignored calls from the rubber farmers to offer sustainable solutions. It had opted to provide short-term remedies similar to those of previous governments.

Tossapol said the government had chosen to support capitalists by approving a budget for the Rubber Estate Organisation to buy the rubber and store it in warehouses.

"This measure is suspicious. We want the government to check rubber stocks to see if the 210-billion tonnes of rubber kept in storage earlier is still intact. By giving money to the organisation to buy rubber, we wonder if this is because rubber kept in store earlier is no longer in the stock,'' he said.

He said his group had called on the government to check the rubber stock two months ago, but their call had fallen on deaf ears.

"This makes us believe the rubber is no longer in storage. It disappeared from the time of the previous government. This government must [determine] if any irregularities took place in the previous government. We suspect that some warehouses may be burnt down to cover up evidence. If that is the case, we are sure that there is corruption in the scheme,'' he said.

He called for a panel to be set up to check rubber stocks the same way a panel was set up to check rice stocks.

He said his group would hold seminars to expose alleged irregularities in rubber storage.

Tossapol said his group had called on the government to support rubber farmers by constructing factories to transform rubber into products, setting up co-operatives or unions so farmers had bargaining power to leverage against capitalists. "We will protect our rubber farms, which have been our livelihood since our ancestors,'' he said.

He accused the government of helping only business people.

"Foreign companies have taken control of the market mechanism of agricultural produce. We have been pushed to the edge and have lost our land and can leave nothing much to our children."

He vowed to exercise his right to demand state support to keep rubber farming as a livelihood for the next generation.

Boonsong Nabthong, president of the Rubber Farmers Confederation of Thailand, said the government subsidy to farmers of Bt1,000 per rai was just a short-term remedy. He said the government must come up with a rubber price restructuring, setting up industries to process rubber instead of solely relying on exports.

Sonthorn Rakrong, a rubber farmer leader, said farmers had over the past two years suffered losses due to the high cost of fuel and fertiliser. He said the government subsidy did not support all farmers but only farmers who have particular land title deeds.

Source: http://www.nationmultimedia.com/politics/Farmers-want-more-than-a-subsidy-suspect-graft-30246483.html


-- The Nation 2014-10-29

[Bluespunk]

"By giving money to the organisation to buy rubber, we wonder if this is because rubber kept in store earlier is no longer in the stock,'' he said."

Waa, waa, waa, the nasty men won't give us lots more money for doing nothing. They must be helping someone else then. Those they are helping must have done something wrong. I have no evidence for this, but I'm not getting what I want. It's not fair…..

Pathetic

Edited October 28, 2014 by Bluespunk

[ClutchClark]

From the article:

Sonthorn Rakrong, a rubber farmer leader, said the government subsidy did not support all farmers but only farmers who have particular land title deeds.

------------

Why would this measure have been enacted which specifies types of land owners?

Was it to cut down on abuse?

[taff33]

"By giving money to the organisation to buy rubber, we wonder if this is because rubber kept in store earlier is no longer in the stock,'' he said."

Waa, waa, waa, the nasty men won't give us lots more money for doing nothing. They must be helping someone else then. Those they are helping must have done something wrong. I have no evidence for this, but I'm not getting what I want. It's not fair…..

Pathetic

. Yes I do think that your reply is pathetic.

[rubl]

With all government promotion since Gen. Chavalit started late 90'sh the North East has a larger share of rubber trees and most likely rubber production than the South. Why are rubber tree farmers there not complaining? No problems there ?

[Ricardo]

"Foreign companies have taken control of the market mechanism of agricultural produce."

The Law of Supply & Demand is a wicked farang plot, designed to target Thai producers, I'm glad he's cleared that one up then !

It's an unfortunate fact that a global fall in demand, as the world economy slows, has coincided with high Thai production due to previous governments encouraging farmers to produce more rubber & liquid-latex, this will inevitably affect local incomes & living standards.

I can't see any quick-fixes to this fundamental economic-law, although government might find some way to mitigate the pain, in the short-term.

The call to check warehouse stocks seems sensible, can't do any harm & might reveal some corruption.

[ezzra]

Hell yeah, what subsidy ? we want FREE MONEY, like those rice farmers, we want to also

sell the government our rubber stocks and get a crazy price for it, and when no one is looking,

we will sell some of the neighboring countries rubber as well....

[metisdead]

Grammar police derailment posts and replies have been removed.

[Orac]

"This measure is suspicious. We want the government to check rubber stocks to see if the 210-billion tonnes of rubber kept in storage earlier is still intact. "

What is suspicious is that, even in Thailand, there is anyone gullible enough to believe in the existence of 210 billion tonnes of rubber. Would probably take a warehouse the size of Thailand to keep it in.

[Gunna]

"This measure is suspicious. We want the government to check rubber stocks to see if the 210-billion tonnes of rubber kept in storage earlier is still intact. "

What is suspicious is that, even in Thailand, there is anyone gullible enough to believe in the existence of 210 billion tonnes of rubber. Would probably take a warehouse the size of Thailand to keep it in.

A typo for sure.

Thailand produced 4.2 million tonnes of rubber in 2013

so he is saying that they have more than 50 years production in storage and have sold any.

200 billion tonnes is the known world oil reserves

Maybe 210 thousand tonnes in storage

[charmonman]

There was an article I read a few months ago about the government trying to get rubber tree farmers to convert to palm oil because of an oversupply of rubber.

Meanwhile my girlfriend's family in the North apparently want to convert their rice farm to rubber. It seems they think that by the time their farms are ready to produce rubber (at a minimum 3 years, i think its more like 7), many of the current rubber producers will have converted away from it, and there will no longer be an oversupply of rubber.

Does anyone here have any expertise on the subject, and can offer an opinion on their strategy? Personally, I have my doubts.

[Toknarok]

There was an article I read a few months ago about the government trying to get rubber tree farmers to convert to palm oil because of an oversupply of rubber.

Meanwhile my girlfriend's family in the North apparently want to convert their rice farm to rubber. It seems they think that by the time their farms are ready to produce rubber (at a minimum 3 years, i think its more like 7), many of the current rubber producers will have converted away from it, and there will no longer be an oversupply of rubber.

Does anyone here have any expertise on the subject, and can offer an opinion on their strategy? Personally, I have my doubts.

Taking a gamble on what the demand for rubber will be in 7 years time IMO is foolhardy in the extreme. Yes you are correct in saying it takes 7 years before a tree can be tapped, try it before and you either kill the tree or severely stunt it's growth. If your GF's family don't know that then even contemplating switching to rubber will be catastrophic.

Many rubber farmers I know have stopped latex extraction. They are only getting 15-17 baht a kilo and it's just not worth their while. World oversupply and the relatively low price of oil at present (artificial rubber made from petroleum products) means that rubber prices are set to be in the doldrums for some considerable time.

Better persuade the GF's family to plant fruit trees or sugar cane.

[seajae]

when will thai farmers take responsibility for their own outcomes. Who is responsible when world prices fall, definitely not the govt, who plants all the crops and decides what they will be, again not the govt. These whinging farmers are always complaining but we do not see them returning any money given to help them when prices are high, all they care about is profit and they need to start accepting that if they plant the wrong crops it is their fault and no one elses, they deserve nothing for their own bad choices, maybe they should research what they can grow instead of just looking at current profit margins.

[rickirs]

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when will thai farmers take responsibility for their own outcomes. Who is responsible when world prices fall, definitely not the govt, who plants all the crops and decides what they will be, again not the govt. These whinging farmers are always complaining but we do not see them returning any money given to help them when prices are high, all they care about is profit and they need to start accepting that if they plant the wrong crops it is their fault and no one elses, they deserve nothing for their own bad choices, maybe they should research what they can grow instead of just looking at current profit margins.

Why take responsibility when the Junta seems to respond to every rice and farmer complaints for low or lost profits with increasingly number of subsidies and price guarantees? Why would the Junta care about farmer complaints when it is not an elected body? The answer of course is that when a junta (in general) overthrows a government by force and abolishes people's constitutional rights, it cannot simply insulate itself from the public by arms alone. That could breed an armed counter revolution.

Public opinion and sentiment is actually vital to the continuation of a junta - witness the constant stream of Dusit polls after the coup that has tried to show unwaivering, majority support for the coup and its policies. Gen. Prayut's weekly TV broadcasts and Happiness Concerts are part of the Junta's PR program to keep favor wioth the public. But even martial law is failing to silence farmers as to their deepening economic plight. They don't care how someone became the government, they care how it is going to improve their financial plight. To simply respond by saying they need to take "responsibility" when action is likely beyond their ability or control is only going to be treated with adversity.

[RustBucket]

He suspects some rubber warehouses were burnt down to cover up stolen rubber?

I think a warehouse full of rubber on fire would have made big news. The black smoke would have been visible from Australia.

More likely he is right about it being stolen under the last government. They have stolen from everything else, so why not the rubber also.

[Ulic]

Not sure why they are so concerned whether the government that bought and stored rubber has sold some of it.

Is that not what they are supposed to do. They bought at above market price paying the farmers a premium in the

hope of smoothing out the dips in the world price. Another silly program but why be upset if they sell some of the stock.

[Bluespunk]

"By giving money to the organisation to buy rubber, we wonder if this is because rubber kept in store earlier is no longer in the stock,'' he said."

Waa, waa, waa, the nasty men won't give us lots more money for doing nothing. They must be helping someone else then. Those they are helping must have done something wrong. I have no evidence for this, but I'm not getting what I want. It's not fair…..

Pathetic

. Yes I do think that your reply is pathetic.

As is yours.

How about a more detailed answer?

You really think that this guys claim of corruption is valid?

Evidence please.

[charmonman]

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

There was an article I read a few months ago about the government trying to get rubber tree farmers to convert to palm oil because of an oversupply of rubber.

Meanwhile my girlfriend's family in the North apparently want to convert their rice farm to rubber. It seems they think that by the time their farms are ready to produce rubber (at a minimum 3 years, i think its more like 7), many of the current rubber producers will have converted away from it, and there will no longer be an oversupply of rubber.

Does anyone here have any expertise on the subject, and can offer an opinion on their strategy? Personally, I have my doubts.

Taking a gamble on what the demand for rubber will be in 7 years time IMO is foolhardy in the extreme. Yes you are correct in saying it takes 7 years before a tree can be tapped, try it before and you either kill the tree or severely stunt it's growth. If your GF's family don't know that then even contemplating switching to rubber will be catastrophic.

Many rubber farmers I know have stopped latex extraction. They are only getting 15-17 baht a kilo and it's just not worth their while. World oversupply and the relatively low price of oil at present (artificial rubber made from petroleum products) means that rubber prices are set to be in the doldrums for some considerable time.

Better persuade the GF's family to plant fruit trees or sugar cane.

Thanks Toknarok.