Rubber farmers seek compensation for price below Bt60

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Rubber farmers seek compensation for price below Bt60
The Nation

BANGKOK: -- The rubber industry will today ask the government to compensate farmers for a market price below Bt60 per kilogram after initially seeking compensation for prices below Bt80.

The news comes as the government has revealed that it believes a planned rally by rubber farmers in Phatthalung on Friday in response to falling rubber prices is not an attempt to put pressure on the government but merely an information-gathering exercise.

Domestic rubber prices range between Bt35-37 per kg compared to a peak of almost Bt180 over the past few years.

"If the rubber market price is Bt45 per kg, the government will have to compensate farmers for the Bt15 gap. If the price is Bt60 or higher, the government has no need to subsidise," said Manoon Ouppala, chairman of a network of rubber planters in Surat Thani.

He believed that farmers, including tappers, could survive amid the current economic situation with sufficient government support.

As such, a network of 35 rubber planting organisations will today submit a letter to the National Council for Peace and Order via the Surat Thani governor, asking for compensation for prices below Bt60.

Manoon said that if the government set a compensation budget of Bt9 billion that would provide great relief to the industry. "There won't be any more protests by rubber planters," Manoon said.

In response to Friday's planned protest, Government Spokesman Maj-General Sansern Kaewkamnerd yesterday said the Prayut administration was ready to listen to all parties in a bid to reverse the falling prices and stabilise the market price at Bt60 per kg.

"It's hardly possible to shore up the rubber price to reach Bt80 per kg, and we have to be concerned about the world market price," Sansern said.

The northern planters' network said Prime Minister General Prayut Chan-o-cha had not acknowledged the real cost of production, which had been affected by the daily minimum wage rising to Bt300.

The production cost had climbed to Bt64.50 per kg as a result, it said. Vietnam's minimum daily wage was the equivalent of Bt120, Indonesia's Bt80 and Myanmar, Laos and Cambodia's Bt40, said Weerasak Sinuwong, public relations director for the board of the Rubber Planters Network of Thailand.

Weerasak said Thailand also had a limited rubber-price ceiling after signing an agreement with the Chinese government to sell China 400,000 tonnes of rubber at Bt60 per kg.

Under the terms of the contract, this had to be delivered in 18 months. Weerasak said the government had killed farmers by setting the price at Bt60 per kg because the production cost was Bt64.50 per kg. In order to make a 30-per-cent profit, the price should be Bt94.50, he said.

Source: http://www.nationmultimedia.com/national/Rubber-farmers-seek-compensation-for-price-below-B-30249842.html


-- The Nation 2014-12-15

[chooka]

I made a decision to buy a lottery ticket and I didn't win. Can the government compensate me for my bad financial decision.

[ramrod711]

"If the rubber market price is Bt45 per kg, the government will have to compensate farmers for the Bt15 gap. If the price is Bt60 or higher, the government has no need to subsidise," said Manoon Ouppala, chairman of a network of rubber planters in Surat Thani.

Here we go again, if they fall into this pit, they deserve to be charged with stupidity.

[Toknarok]

It was Suthep and his rubber farming thug mates that brought down the last legitamate Government. Now look what youv'e got. Som Nam Na!

[Thai at Heart]

I guess if the price goes to 75, the govt van buy it for 60 to get paid back right?

[tx22cb]

Are those who backed this horse now getting buyer's remorse?

Although the "Govt" can't do much about the global commodity prices, at least they are helping by declaring the protest as a mere "information-gathering exercise". As long as no 3-finger salutes are displayed, of course - now, those would be really terrifying.

[chainarong]

My bank account has fallen below 500 Baht, can I seek compensation. I point out that the Iron ore price in OZ has fallen in the last 6 months from $120 T to $58 T all companies are suffering mostly the smaller ones , both State and Federal Governments royalties and tax receipts have crashed, there's high unemployment, the budget has blown out to Billions and the State of WA is broke, but no one is suggesting compensation , it is called market price , you have to wear it darlings.

[HiSoLowSoNoSo]

Thailand will never be able to compete with the rest of the world, they just keep on shooting themselves in the foot.

[Daniel Boon]

I have already emailed you re warning

[ThaiFelix]

I made a decision to buy a lottery ticket and I didn't win. Can the government compensate me for my bad financial decision.

That was my first thought too. Its all a gamble and sometimes you lose. I do feel sorry for some of the farmers as its there only source of income but you win some you lose some. At the same time it seems crazy for the Govt to contract to sell to the Chinese at 60 baht which can only drive the price down.

[patongphil]

I made a decision to buy a lottery ticket and I didn't win. Can the government compensate me for my bad financial decision.

That was my first thought too. Its all a gamble and sometimes you lose. I do feel sorry for some of the farmers as its there only source of income but you win some you lose some. At the same time it seems crazy for the Govt to contract to sell to the Chinese at 60 baht which can only drive the price down.

How can a contract to sell at 60 baht per kilo drive the price down - it is currenlty at about 35 baht per kilo. Please enlighten me as I fail to understand your logic.

Edited December 15, 2014 by patongphil

[ThaiFelix]

I made a decision to buy a lottery ticket and I didn't win. Can the government compensate me for my bad financial decision.

That was my first thought too. Its all a gamble and sometimes you lose. I do feel sorry for some of the farmers as its there only source of income but you win some you lose some. At the same time it seems crazy for the Govt to contract to sell to the Chinese at 60 baht which can only drive the price down.

How can a contract to sell at 60 baht per kilo drive the price down - it is currenlty at about 35 baht per kilo. Please enlighten me as I fail to understand your logic.

Sorry, my bad. I am guilty of that which I often complain where someone comments before reading or understanding the whole post. I misunderstood the current farm price as 60. Apologies for the confusion.

[rickirs]

'Manoon said that if the government set a compensation budget of Bt9 billion that would provide great relief to the industry. "There won't be any more protests by rubber planters, ...'

And the Junta will do just that to appease the farmers - no different than any elected-led government. It's called politics and using the national treasury to get political loyalty. Unfortunately, unlike the Junta-led government, an elected government will be held accountable to its electrorate for policy failures and to the NACC for dereliction of duty. It appears that when it comes to economic matters, the Junta is a paper Tiger.

[bikerbri]

The Americans are producing top grade latex rubber from dandelion weeds (Taraxagum,) and its taking off. The cost is a lot less 60 Baht. and no subsidy.

http://www.rubbernews.com/article/20140925/NEWS/140929964/conti-begins-making-tires-made-of-dandelion-latex