MOAC Dept Min: Thai rubber price recovered from crisis

[webfact]

MOAC Dept Min: Rubber price recovered from crisis

BANGKOK, 5 January 2015 (NNT) – The Deputy Minister of Agriculture and Cooperatives has stated the rubber price situation has passed the critical point, while the government is promoting domestic rubber consumption and rubber market management.

The Deputy Minister of Agriculture and Cooperatives Amnuy Patisae has revealed the progress of helping measures for rubber farmers, stating that the government is gearing up its plans to help farmers, especially the urgent issue of establishing a balanced rubber price.

He said that the price of rubber has fallen to 43.50 baht per kilogram. However, the current price for smoked rubber sheet is now at 60.75 baht per kilogram.

Many related sectors' research shows that the situation has passed the most critical point and is entering the constant recovery phase, which will depends on the global economy, automobile industry, and the oil price, which affects the rubber price, said the Deputy Minister.

He has further said that the government will continue to encourage domestic rubber consumption and market management based on the economic mechanisms, while the compensation and pricing control measures from the government will help farmers cope with costs during these difficult times.

The payment of the compensation to rubber farmers is expected to be finished within October, said the Deputy Minister.

The Deputy Minister of Agriculture and Cooperatives said further that in January, there will be a meeting to discuss the overall rubber control measures, which will include issues of rubber harvesters or farmers who farms on lands with no title deeds.

-- NNT 2015-01-05

[jcisco]

How about, cut production by retasking the land currently utilized in growing these trees, demand is only going to continue shrinking. The government may need to try and assist farmers who are left with many years of zero production while their new farms come up to production but hey, team effort you;ve know it was coming for far too long

[Thai at Heart]

is entering the constant recovery phase.

I must have missed this during my economics degree.

[chainarong]

Good to see the rubber price has recovered, at first I thought it might have asbestosis related disease . a good fast recovery that's what we all want.

[Seastallion]

How is the rubber price tied with oil price? Does rubber price go up or down when oil price falls?

[worgeordie]

Yes,I am sure the prices will bounce back,

regards Worgeordie

[surangw]

its the rubber band theory, keep going until it snaps back ( and stings all that are connected)

[khunsiam]

How is the rubber price tied with oil price? Does rubber price go up or down when oil price falls?

cheaper oil = cheaper synthetic rubber = less demand for natural rubber

[Gonsalviz]

He said that the price of rubber has fallen to 43.50 baht per kilogram. However, the current price for smoked rubber sheet is now at 60.75 baht per kilogram.

My question is: what type of rubber was the 43.50 baht price for? Cup rubber is always cheaper. Smoked sheets is premium price.

[krabicriminal]

The wife's family have 60 rai of full grown rubber trees. current prices are just not enough for most people, especially those with debts... And all this rain in the south isn't helping, I sure hope the price does rise this year for many people have been feeling the pinch. If the price doesn't rise there will be hardships for many families. Our family have also moved into palm oil to keep the money flowing. There have been weeks where no rubber was cut due to the rain

[rickirs]

“The Deputy Minister of Agriculture and Cooperatives has stated the rubber price situation has passed the critical point … the current price for smoked rubber sheet is now at 60.75 baht per kilogram.”

The breakeven price for rubber sheet is Bt64/kg, the government subsidy is Bt60/kg, and the farmers are demanding Bt80-90/kg. I think the farmers may have a different opinion about whether the critical point has been passed.

Last month the pro-coup Southern rubber farmers threatened the Junta with more protests this month unless it raises the subsidy. I suspect the Junta won’t raise the rubber subsidy beyond Bt60/kg ( a price it recently negotiated with the Chinese) but will create ‘new’ subsidies that will effectively satisfy the farmer’s demands that essentially guarantee them a 30% profit margin. Believe it or not, the Junta does need the political support!

[rickirs]

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

He said that the price of rubber has fallen to 43.50 baht per kilogram. However, the current price for smoked rubber sheet is now at 60.75 baht per kilogram.

My question is: what type of rubber was the 43.50 baht price for? Cup rubber is always cheaper. Smoked sheets is premium price.

Hope this helps.

Edited January 6, 2015 by rickirs

[Seastallion]

How is the rubber price tied with oil price? Does rubber price go up or down when oil price falls?

cheaper oil = cheaper synthetic rubber = less demand for natural rubber

So, with no oil price rise for at least the next 6 months.......Why does this guy predict a rally for rubber price?

[chotthee]

Good to see the rubber price has recovered, at first I thought it might have asbestosis related disease . a good fast recovery that's what we all want.

Thank you the dear leader Prayuth for almost single handed lifted the rubber price for the Thai people by 50%.

It was 43.50 baht per kilogram, but with Prayuth intervention, now the Thai farmers are enjoying an astronomical 60.75 baht per kilogram.

Thank you prayuth again 3 times.

[bangon04]

If the government spokesman says it is, then it must be true.....

[luk AJ]

I am very happy for the rubber farmers, but supporting prices is in my opinion a bad idea. Exactly the same happened with the rice subsidies and Yinluck is now held responsible for the losses. What about shrimp farmers who suffer for the last couple of years? It is just another populist policy.

[slapout]

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

He said that the price of rubber has fallen to 43.50 baht per kilogram. However, the current price for smoked rubber sheet is now at 60.75 baht per kilogram.

My question is: what type of rubber was the 43.50 baht price for? Cup rubber is always cheaper. Smoked sheets is premium price.

Hope this helps.

RubberDec2014.jpg

someone may want to review the tv farm forum, rubber, topic. farmgate price forum, for rubber liquid collected via tapping, it is in the 20 baht+_/kilo range. many rubber farmers sell at this stage as quanity/facilities on the farm, are not conducive to producing sheet/smoking, transport to main buyers, etc.the man is so far out of touch with the small/majority of rubber farm owners, it is almost laughable, but it makes you want to cry.

[rickirs]

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

Good to see the rubber price has recovered, at first I thought it might have asbestosis related disease . a width=32 alt=cheesy.gif> good fast recovery that's what we all want.

Thank you the dear leader Prayuth for almost single handed lifted the rubber price for the Thai people by 50%.

It was 43.50 baht per kilogram, but with Prayuth intervention, now the Thai farmers are enjoying an astronomical 60.75 baht per kilogram.

Thank you prayuth again 3 times.

You are comparing to two different rubber types: latex vs. sheet. They are not priced the same. But the bottom line for farmers is that they cannot make a profit from sales of either type and want the Prayuth government to subsidize the profit.