Amnuay: Price of rubber would rise to 60 baht/kg before year-end

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Amnuay: Price of rubber would rise to 60 baht/kg before year-end



BANGKOK, 18 Dec 2014 (NNT) - Deputy Minister of Agriculture and Cooperatives Amnuay Patise is confident that his ministry will be able to raise the price of third-grade smoked rubber sheets to 60 baht/kg by the end of this year. The minister is also preparing to visit rubber planters to raise their understanding about the Government’s sincerity and capacity in dealing with the issue.

According to Mr. Amnuay, the move on the new price, if achieved as planned, is considered faster than the ministry’s target. He expressed his belief that the rubber price issue would not be used as a political tool because the government was working to address the problem in direct coordination with planters’ representatives. A number of planters last week made a demand to the Government to buy their products at 80 baht/kg.

The minister also stated that steps are being taken to implement the Prime Minister’s suggestion to use rubber in the production of running tracks, tiles, roads, and other constructions as a way to boost the need and prices of rubber.

Mr. Amnuay said he was discussing with Finance Ministry officials a possibility of amending some laws that would facilitate more use of rubber and rubber processing without leaving rooms for corruption in the process.

Currently only 14% of rubber produced in the country is meant for domestic consumption.


-- NNT 2014-12-18

[Anthony5]

Did he say the asking price or the selling price?

[NeverSure]

While he's at it, would he please tell me what the price of gold and the SET will be by year end?

[RubbaJohnny]

It's a Rebound or waht my domanatrix says getting tied up again.

It's fantastic to see how this small nation with such meagre intellectual resrves has discovered the trick of how to buck the market,

Cheers and beers for the Buccaneers

Despite a hole in the head I have High hopes Fwank Sinatra my old 'caddie'it's just another runner tree stunt

https://www.youtube.com/watch?v=wOOTF8vu6ps

[Toknarok]

Use more domestically, how about free condoms for all, especially randy teenagers to cut down on all those unwanted pregnancies.

[Bob12345]

The minister also stated that steps are being taken to implement the Prime Minister’s suggestion to use rubber in the production of running tracks, tiles, roads, and other constructions as a way to boost the need and prices of rubber.

Maybe they can also start using old rice for running tracks and roads.

But those steps will increase the demand for rubber and therefore the price, only problem is that the government will be purchasing those running tracks, tiles and roads meaning it is just a subsidy in disguise. And it will decrease the demand for other materials that will be substituted with the rubber, who is going to compensate the producers of those products?

[Benmart]

Forecasts are predictions or estimates.

The various Ministries that issue statements, based on events that have yet to happen, continue to erode any semblance of credibility.

[Tanlic]

Spoke to a Thai who told me there was no money in rubber in south Thailand because of the stock piles in Bangkok but it would rise when the stock piles diminish........Since they closed the stalls during the day on Sukhumvit I would have thought the sales on banana shaped rubber items has gone down....must be those teens Toknarok is on about that are using up supplies

[tonbridgebrit]

Well, I think the government are going to buy rubber, and yes, the price can or will go to 60 baht per kilo. They could actually say that they will be buying next week, this will cause speculators and investors to buy rubber. Hence, the price might jump to 55 even BEFORE the government starts buying.

The junta should copy Europe, South Korea and Japan, and subsidise the rubber farmers for the time being. They should also advise the rubber planters to switch to other plants. Also, subsidising the farmers will generate support for the junta, and maybe they will win the next election.

Governments, like Thaksin and European governments, carry out policies to generate support and votes. How will any party win an election ? This is how you win an election, carry out policies that the people want.

[Ulic]

Words, words, words, meaningless.

[khunsiam]

cheap oil = cheap synthetic rubber = natural rubber down

[rickirs]

"... raise the price of third-grade smoked rubber sheets to 60 baht/kg by the end of this year ..."

Thanks for NOTHING.

The northern rubber planters' network has said (“The Nation” 2014-12-15) that the production cost had climbed to Bt64.5/kg. Meanwhile the government has signed an agreement with the Chinese government to sell China 400,000 tons of rubber at Bt60/kg to be delivered in 18 months. That deal will force rubber futures to stay no higher than Bt60/kg through 2015 and into 2016!

The association says that in order to make a 30%, the price should be Bt94.50/kg ! But Government Spokesman Major-General Sansern says, "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 ..."

The government solution is one of "a dog chasing its tail." I sense another illegal public rubber farmer protest coming in January 2015. The rubber farmers gave the government fair WARNING.

[rickudon]

There is over supply of rubber in the world and about another half a million hectares have been planted in SE Asia over the last 7 years - just coming into production. The only way a 60 baht per kilo price can be maintained is by subsidy - over and above the 1,000 baht a rai subsidy. Alternatively, devalue the baht by 20% ....

Getting out of rubber isn't easy as so much is invested in planting and maintaining trees until they can be tapped - and about 25 years before it is too old. Changing only really an option for old plantations past their prime, or ones only a couple of years old (but anyone could see this coming for the last 3 years, you just need to map planting against projected demand). Thailand has stockpiled rubber just like it did rice - just not so much of it and still the price went down.

The only way the price will rise short term is if farmers make so little they stop tapping - but a price rise will immediately cause tapping to start again and production to increase ..... If you can project at what stage plantation area starts to decline, then that is probably the time to start planting again....