PM Prayut says no more rubber subsidies or price intervention

[webfact]

PM says no more rubber subsidies or price intervention



BANGKOK: -- Prime Minister Prayut Chan-ocha has ruled out subsidizing rubber planters as a means to help them in the wake of low rubber price reasoning that this may risk violating the rules set by the World Trade Organisation.

He, however, said that the government has to help rubber growers and rubber tappers to enable them to take care of themselves in light of low rubber price by promoting them to grow supplementary crops, to raise domesticated animals or to do whatever so that they have extra incomes.

Prime Minister Prayut chaired a meeting Wednesday of all parties concerned with rubber ranging from rubber planters, plantation owners, rubber tappers to rubber product manufacturers and rubber traders to discuss all rubber-related issues.

He claimed that all parties concerned understood the problems and what needed to be done to go through the current difficult period and for a better future for rubber industry and rubber farming.

He also claimed that conflicts over low rubber price raised by rubber planters had been resolved.

The talks, he said, cover restructuring of rubber cultivation, trading and manufacturing and more utilization of raw rubber to add value to rubber such as production of rubber mattress, rubber gloves, rubber floor mats for soccer field and rubber-covered roads.

The prime minister said the meeting mulled the construction of a track for the testing of locally-made car tyres instead of send them to be tested abroad.

He assured that after a meeting on Wednesday rubber planters and tappers promised not to rally or to stage protests to demand government’s help to shore up rubber price.

Source: http://englishnews.thaipbs.or.th/pm-says-no-more-rubber-subsidies-or-price-intervention


-- Thai PBS 2015-10-21

[canopus1969]

Wonder what the rubber planters have done to rattle his cage ?

[toybits]

Tell the rubber farmers to plant another crop - just like they are asking the rice farmers to do...

[Reigntax]

No more subsidies to you peasants. We have subs to buy and our justification is already rubbery enough.

[worgeordie]

Farmers have to start to realize they are growing commodities,and prices are made on the World

markets,so when prices are high everyone is happy,BUT it will never last,everything goes in cycles

which is why you have to put something aside for a rainy day,we all have to do this,its common

sense,

It would be much better for farmers to stop growing only mono crops,and diversify,keeping fish,

chickens,goats,and grow a wide selection of vegetables and fruit,they could sell any surplus,so

they could buy things they need like soap,oil,clothes,etc,this way they would always have food

to eat,and not depend on others,growing crops where you never make profit and are always

in debt,they need to wake up,the majority cannot be helping the farmers all the time.

regards worgeordie

[tbthailand]

reasoning that this may risk violating the rules set by the World Trade Organisation.

... justifying this based on Uncle GohHok following the rules of some international organization?

That is just bizarre....

[halloween]

reasoning that this may risk violating the rules set by the World Trade Organisation.

... justifying this based on Uncle GohHok following the rules of some international organization?

That is just bizarre....

Would it be better if he bought all the rubber at 50% above market value, then couldn't sell it lest he be accused of "dumping", leading to a massive stockpile guaranteed to depress the price for years? That would be really stupid, wouldn't it?

[phoenixdoglover]

I guess they figure rubber prices aren't going to bounce back.

[BuaBS]

So why are car tyres always more expensive ? All the ingredients are way cheaper than years ago ,but the prices of tyres are out of control !

[Srikcir]

Wonder what the rubber planters have done to rattle his cage ?

"RUBBER farmers are planning to hold major protests, especially in Nakhon Si Thammarat province, today to urge Prime Minister General Prayut Chan-o-cha to implement their four demands in the wake of dropping rubber prices, the coordinator of the Alliance for the Revival of Rubber Farmers said yesterday." The Nation 2015-10-15

[jerojero]

Oh! He's worried about the WTO all of a sudden? Such a wise international perspective from a seasoned politician of 18 months after illegally gaining power.

[Ricardo]

" to enable them to take care of themselves in light of low rubber price by promoting them to grow supplementary crops, to raise domesticated animals or to do whatever so that they have extra incomes. "

Cue gluts in supplementary crops & domesticated animals, but at least they should be better able to feed themselves, if indeed they weren't already doing this.

And sending daughters to Bangkok or Pattaya or Phuket, to 'do whatever', is surely another traditional remedy to poverty ?

[Denim]

But Mr Prayuth ....... I was one of those rubber farmers paid by the PDRC to come and protest and bring the elected government down by a well planned coup by our leader Suthep ?? Surely there must be some mistake ?

[geriatrickid]

No more subsidies to you peasants. We have subs to buy and our justification is already rubbery enough.

Your comment is unfair. There has been an over subsidization of the sector to the extent that improper behavior was encouraged. Examples are;

- Encroachment of public lands and destruction of protected forests/parks by rubber cultivators.

- Inappropriate use of water resources for the growth of rubber trees on land not best suited for rubber trees.

- Inefficient use of land through the introduction of rubber trees into areas where the soil was better suited for other activity.

- Environmental damage and pollution of water sheds by the over use of pesticides and herbicides.

- The destruction of natural jungle and mixed growth zones with replacement by rubber plants has had devasting effects on soil quality and erosion rates in some areas. The root system for rubber plants is much weaker and less effective than the natural jungle plants.

- New rubber plantations rely on genetically similar rubber plants. This is a catastrophe in the making for Thailand as a resistant infection or pest has the potential to wipe out the industry.

In previous years, the rubber cultivators would be out in full force to blackmail the government to hand over money or else they would block roads and riot. The rubber cultivators in the south are closely linked to the Suthep power base and Suthep used his rubber connections to further his political goals.

PM General Prayut is right to try and slow down the expansion of the rubber cultivation industry, which has laid waste to vital tracts of land. Shrinking the industry will make the industry stronger and more profitable over time.It will also act to protect Thailands shrinking jungles.

[spidermike007]

This is intelligent policy making. Subsidies were something the communists dreamed up. And there was a reason why nearly all of their economies (except China, who have a distinctly non communist economic system) are bankrupt, or close to it. Let the rubber, cassava and rice farmers sort out the market themselves. And let them evolve, and eventually find a profitable crop (I consider rice to be the least sensible crop of them all, to grow, as few rice farmers seem to make a good living) to focus their energies on. if Yingluck has not engaged in this disastrous policy, she might have had money to repair highway 4, the main north/south artery in Central Thailand. Between Hua Hin, and Chumporn the highway is a national disaster, in many areas.

[tbthailand]

reasoning that this may risk violating the rules set by the World Trade Organisation.

... justifying this based on Uncle GohHok following the rules of some international organization?

That is just bizarre....

Would it be better if he bought all the rubber at 50% above market value, then couldn't sell it lest he be accused of "dumping", leading to a massive stockpile guaranteed to depress the price for years? That would be really stupid, wouldn't it?

blah, blah, blah...

the broken record continues...

[halloween]

reasoning that this may risk violating the rules set by the World Trade Organisation.

... justifying this based on Uncle GohHok following the rules of some international organization?

That is just bizarre....

Would it be better if he bought all the rubber at 50% above market value, then couldn't sell it lest he be accused of "dumping", leading to a massive stockpile guaranteed to depress the price for years? That would be really stupid, wouldn't it?

blah, blah, blah...

the broken record continues...

...........no matter how much you would like it to stop. Was that comparison uncomfortable for you?

[JingerBen]

No more subsidies to you peasants. We have subs to buy and our justification is already rubbery enough.

Your comment is unfair. There has been an over subsidization of the sector to the extent that improper behavior was encouraged. Examples are;

- Encroachment of public lands and destruction of protected forests/parks by rubber cultivators.

- Inappropriate use of water resources for the growth of rubber trees on land not best suited for rubber trees.

- Inefficient use of land through the introduction of rubber trees into areas where the soil was better suited for other activity.

- Environmental damage and pollution of water sheds by the over use of pesticides and herbicides.

- The destruction of natural jungle and mixed growth zones with replacement by rubber plants has had devasting effects on soil quality and erosion rates in some areas. The root system for rubber plants is much weaker and less effective than the natural jungle plants.

- New rubber plantations rely on genetically similar rubber plants. This is a catastrophe in the making for Thailand as a resistant infection or pest has the potential to wipe out the industry.

In previous years, the rubber cultivators would be out in full force to blackmail the government to hand over money or else they would block roads and riot. The rubber cultivators in the south are closely linked to the Suthep power base and Suthep used his rubber connections to further his political goals.

PM General Prayut is right to try and slow down the expansion of the rubber cultivation industry, which has laid waste to vital tracts of land. Shrinking the industry will make the industry stronger and more profitable over time.It will also act to protect Thailands shrinking jungles.

Good post.

You make some excellent points that are hard to argue with.

[spidermike007]

No more subsidies to you peasants. We have subs to buy and our justification is already rubbery enough.

Your comment is unfair. There has been an over subsidization of the sector to the extent that improper behavior was encouraged. Examples are;

- Encroachment of public lands and destruction of protected forests/parks by rubber cultivators.

- Inappropriate use of water resources for the growth of rubber trees on land not best suited for rubber trees.

- Inefficient use of land through the introduction of rubber trees into areas where the soil was better suited for other activity.

- Environmental damage and pollution of water sheds by the over use of pesticides and herbicides.

- The destruction of natural jungle and mixed growth zones with replacement by rubber plants has had devasting effects on soil quality and erosion rates in some areas. The root system for rubber plants is much weaker and less effective than the natural jungle plants.

- New rubber plantations rely on genetically similar rubber plants. This is a catastrophe in the making for Thailand as a resistant infection or pest has the potential to wipe out the industry.

In previous years, the rubber cultivators would be out in full force to blackmail the government to hand over money or else they would block roads and riot. The rubber cultivators in the south are closely linked to the Suthep power base and Suthep used his rubber connections to further his political goals.

PM General Prayut is right to try and slow down the expansion of the rubber cultivation industry, which has laid waste to vital tracts of land. Shrinking the industry will make the industry stronger and more profitable over time.It will also act to protect Thailands shrinking jungles.

Good post.

You make some excellent points that are hard to argue with.

I absolutely agree. When rubber prices were high, they could not cut down enough forests to plant rubber. I saw rubber farmers in Toyota dealerships with a million baht cash, buying their new trucks. Now the market has settled down. The free market is a beautiful thing.

[Praematura]

Thailand has arguably been in violation of the subsidy protocol as it related to rice for a while. The great WTO violator China even stopped reporting numbers in 2008. There are exceptions that developing farmers have within the agreement that arguably could qualify. The pm is so disingenuous that it's laughable for him to claim his cut in payments is somehow related to his concern for WTO violation. I mean he's in violation of the international fishing rules and a Thai seafood ban but this pm does nothing but keep the boats parked temporarily. Yet now he's so worried about a hypothetical WTO violation.[emoji38]

[Praematura]

This is intelligent policy making. Subsidies were something the communists dreamed up. And there was a reason why nearly all of their economies (except China, who have a distinctly non communist economic system) are bankrupt, or close to it. Let the rubber, cassava and rice farmers sort out the market themselves. And let them evolve, and eventually find a profitable crop (I consider rice to be the least sensible crop of them all, to grow, as few rice farmers seem to make a good living) to focus their energies on. if Yingluck has not engaged in this disastrous policy, she might have had money to repair highway 4, the main north/south artery in Central Thailand. Between Hua Hin, and Chumporn the highway is a national disaster, in many areas.

Yea because a poor farmer in a poor country can compete with companies similar to Monsanto who also receives enormous amounts from the U.S. Government. Edited October 22, 2015 by Praematura

[spidermike007]

This is intelligent policy making. Subsidies were something the communists dreamed up. And there was a reason why nearly all of their economies (except China, who have a distinctly non communist economic system) are bankrupt, or close to it. Let the rubber, cassava and rice farmers sort out the market themselves. And let them evolve, and eventually find a profitable crop (I consider rice to be the least sensible crop of them all, to grow, as few rice farmers seem to make a good living) to focus their energies on. if Yingluck has not engaged in this disastrous policy, she might have had money to repair highway 4, the main north/south artery in Central Thailand. Between Hua Hin, and Chumporn the highway is a national disaster, in many areas.

Yea because a poor farmer in a poor country can compete with companies similar to Monsanto who also receives enormous amounts from the U.S. Government.

But, that is only a very small part of the grander picture. One has to take into account market realities, cost of producing the product, wholesale prices for a commodity, etc. Rice is a devastatingly poor crop to grow. Few make any real money with it. There are far, far better crops to grow these days. Exotic fruits, hydroponic herbs, etc, etc. Too many to name. Far more profit. Farming is a business. Some business models work, and some do not. I do it because I have always done it, and I do not know what else to do, is a poor excuse indeed. It might have worked as an excuse a hundred, or five hundred years ago. But, not in this day and age.

[Dumbastheycome]

Farmers have to start to realize they are growing commodities,and prices are made on the World

markets,so when prices are high everyone is happy,BUT it will never last,everything goes in cycles

which is why you have to put something aside for a rainy day,we all have to do this,its common

sense,

It would be much better for farmers to stop growing only mono crops,and diversify,keeping fish,

chickens,goats,and grow a wide selection of vegetables and fruit,they could sell any surplus,so

they could buy things they need like soap,oil,clothes,etc,this way they would always have food

to eat,and not depend on others,growing crops where you never make profit and are always

in debt,they need to wake up,the majority cannot be helping the farmers all the time.

regards worgeordie

I cannot help but agree to the sentiment. However diversification is is not quite so simple. Most owners of rubber tree plantations either of significant or small area invested relatively large amounts of money initially. After waiting a numberof years for production the returns without subsidy were lucrative. Being seen to be so many many more copied suit. Not exclusively in Thailand it should be noted. The result has been an international glut.

Unfortunately the cost of removing these same plantations and returning the land to some alternative is not inexpensive. And for those who invested in recent years and also already carry a debt burden are faced with a difficult choice.

Rubber trees grow and produce best in situations where water is not overly abundant. Therefore alternative crops which can provide a good income are limited. The proliferation of palm oil plantations appears to have taken the attention of some. Unfortunately I think a similar situation will arise in not so many years . The Cartel involved will squeeze primary producers as is the sugar Cartel already doing.

Vegetable and fruit production is seasonal and vulnerable to climate and climate variations. Agricultural producers are always subjected to the scathe of urban dwellers about availability and price. And the concept that farmers should remain as subsistence survivors as a means to supply the supposed affluent urban dweller or the truely affluent export agents ?

Perhaps the answer is that farmers should become truely subsistance dwellers and live only on what they grow to eat.....Who then controls the price?

If you want what I produce...then pay me for that which I produce ! At a price that makes my efforts realistic!

Subsidies are counter productive long term. Financial assistance to move the agricultural base of Thailand in real terms to sustainable production for both domestic and export consumption is urgent but complex and not achievable in a short time frame. It is easy to be critical and for many to make flippant comments and suggestions but the outcome depends very much on combinations of generational, social,political direction. The two steps forward and one step back historically has been a stifle in this shrinking world.

[Dumbastheycome]

This is intelligent policy making. Subsidies were something the communists dreamed up. And there was a reason why nearly all of their economies (except China, who have a distinctly non communist economic system) are bankrupt, or close to it. Let the rubber, cassava and rice farmers sort out the market themselves. And let them evolve, and eventually find a profitable crop (I consider rice to be the least sensible crop of them all, to grow, as few rice farmers seem to make a good living) to focus their energies on. if Yingluck has not engaged in this disastrous policy, she might have had money to repair highway 4, the main north/south artery in Central Thailand. Between Hua Hin, and Chumporn the highway is a national disaster, in many areas.

Yea because a poor farmer in a poor country can compete with companies similar to Monsanto who also receives enormous amounts from the U.S. Government.

But, that is only a very small part of the grander picture. One has to take into account market realities, cost of producing the product, wholesale prices for a commodity, etc. Rice is a devastatingly poor crop to grow. Few make any real money with it. There are far, far better crops to grow these days. Exotic fruits, hydroponic herbs, etc, etc. Too many to name. Far more profit. Farming is a business. Some business models work, and some do not. I do it because I have always done it, and I do not know what else to do, is a poor excuse indeed. It might have worked as an excuse a hundred, or five hundred years ago. But, not in this day and age.

"I do it because I have always done it, and I do not know what else to do " is the reality because the education and information to promote change has remained the property of the higher echelons who have selectively dispensed it according to advantage. And all too often with the funding that came with it .

[Cook my sock]

Phuket is overrun with rubber tree forests. I guess a certain politician is pushing the PM too much

Sent from my iPhone using Tapatalk

[spidermike007]

This is intelligent policy making. Subsidies were something the communists dreamed up. And there was a reason why nearly all of their economies (except China, who have a distinctly non communist economic system) are bankrupt, or close to it. Let the rubber, cassava and rice farmers sort out the market themselves. And let them evolve, and eventually find a profitable crop (I consider rice to be the least sensible crop of them all, to grow, as few rice farmers seem to make a good living) to focus their energies on. if Yingluck has not engaged in this disastrous policy, she might have had money to repair highway 4, the main north/south artery in Central Thailand. Between Hua Hin, and Chumporn the highway is a national disaster, in many areas.

Yea because a poor farmer in a poor country can compete with companies similar to Monsanto who also receives enormous amounts from the U.S. Government.

But, that is only a very small part of the grander picture. One has to take into account market realities, cost of producing the product, wholesale prices for a commodity, etc. Rice is a devastatingly poor crop to grow. Few make any real money with it. There are far, far better crops to grow these days. Exotic fruits, hydroponic herbs, etc, etc. Too many to name. Far more profit. Farming is a business. Some business models work, and some do not. I do it because I have always done it, and I do not know what else to do, is a poor excuse indeed. It might have worked as an excuse a hundred, or five hundred years ago. But, not in this day and age.

"I do it because I have always done it, and I do not know what else to do " is the reality because the education and information to promote change has remained the property of the higher echelons who have selectively dispensed it according to advantage. And all too often with the funding that came with it .

Correct. I sometimes think that rice farming is the single greatest way the elite keep the poor in poverty. It is something to be avoided at all costs. Whatever it takes. By raising oneself up from rice farming to a more progressive crop, you are essentially slapping the butt headed elites on the face, and kicking them in the ass.

[jerojero]

No more.... That ought to bring happiness to the affected people. Well done Mr PM

[billd766]

No more.... That ought to bring happiness to the affected people. Well done Mr PM

My wife's restaurant business has collapsed?

Do you think she ought to ask the PM for a subsidy?

After all she, like the rubber planters and the rice farmers went into business without government help.

She paid no taxes as she didn't earn enough but surely it is the governments duty to subsidise her.