Protesting Thai rubber farmers defy martial law

[rickirs]

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I thought Prayuth had just put in motion a 58 billion baht rubber scheme for them, to look after his Democrat support base.

That's after paying off 90b B for the rice scheme (less sales of rice) and before installing a constitution that prohibits populist schemes.

Only in Thailand.

The subsidy is set at 1,000 baht per rai of plantation and is estimated to cost the state Bt8.7 billion. Payments began Nov 1.

NAKHON SI THAMMARAT, 29 November 2014 –The Thai government is strengthening the structure of the Central Rubber Market system by giving an approval to a three-phase development plan to be implemented during 2015-2017.

According to Athiwee Daengkanit, acting Head of the province’s central rubber market, the plan will be piloted in Nakhon Si Thammarat with a budget of 62.1 million baht to be spent on IT system and rubber silo development. This market will be developed as a rubber center and linked with 11 other markets.

In the second phase, a similar system will be developed in Songkhla and Surat Thani provinces.

The third phase is to renovate trading centers at five provincial offices of the Rubber Replanting Aid Fund in Udon Thani, Chantaburi, Bueng Kan, Trang, Satun as well as the trading office of the Rayong Provincial Administrative Organization.
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I don't think the rubber farmers care to wait until 2015-2017 for the government's new development plan.

[rickirs]

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I feel sorry for the rubber farmers as the prices have tumbled down.

But I don't agree with their demands for the government to buy their produce for more than double the current price.

They had good times before they have a bad spell now.

It's not the governments fault as it is not their fault either.

But they have to learn to live in this free world as so many other trades do.

No good protesting and demanding.

Where will the money come from?

If they get, there will a lot of others also demanding.

It is the government's fault.

The Junta rewarded the rice farmers for their support of the coup by paying off the rice pledge program by borrowing and starting new subsidies to further guarantee high rice prices. It then under pressure from the rubber farmers provided them with a bt.8 billion subsidy and a 2-3 year development plan costing bt.80 million. But it's's not enough so they are demanding rightly so, more subsidies on par with the rice farmers. And now the milk, coconut, soybean, etc. farmers want in on the government handouts.

[rickirs]

Thailand's new trading partner China appears to be a contributing factor to rubber surplus and resulting lower world prices in part due to its innovated use of plastic to replace rubber and commodity financial devices.

Chinese firms have been using surplus rubber stockpiles as a means to import low-cost foreign financing. The deal requires an offshore bank to issue a letter of credit against physical rubber stocks owned either in transit or held in bonded warehouses, which can be cashed onshore into local currency. it's like "having your cake and eating it too." But the bottom line is China doesn't need to increase its rubber stockpile.

The solution to raising rubber (as well as rice) stocks is to decrease the supply such as destroying stocks and/or cease sales, and develop innovative ways to increase demand such as high rubber-content highways and aircraft runways, rubber car moldings, rubber train rails (?), rubber wall coverings, etc. But for the farmer already living in a loss position, time is not a friend - income is needed now. So the solution becomes political and the Junta is in the thick of its own making.

[bikerbri]

The Americans are now producing the best quality rubber from dandelion weeds,and they don't have to wait seven years. Looks like the very people who wanted change are not getting what they wanted.Very quiet in the North East. Rice farmers have accepted their lot and are selling their rice without a subsidy quit happily. Perhaps the southern lot should take a leaf out of the Norths book and get on with it and stop moaning.