Thai rubber planters threaten to rally to demand help from government

[Jonathan Fairfield]

Thai rubber planters threaten to rally to demand help from government

BANGKOK:-Rubber planters in 14 southern provinces have threatened to rally to demand Prime Minister Prayut Chan-ocha to invoke Section 44 of the interim charter to prop up rubber price.

Mr Pairat Jaichum, vice president of a network of rubber planters in 14 southern provinces, said Saturday that the network would a meeting of rubber plants from across the country in the next two weeks to demand real actions from the government to help shore up rubber price which, he said, has dropped to a critical level of about 30 baht/kg in some areas.

He said rubber plants wanted the government to subsidise rubber price at 65 baht/kg and to force the Transport Ministry to increase of the use of raw rubber to pave roads and also to devise measures to increase rubber products so as to add value to raw rubber.

He warned that rubber planters are in deep trouble and they no longer are afraid of the military junta.

Meanwhile, the Ministry of Agriculture and Cooperatives will hold a meeting of agencies concerned to discuss rubber price problem and how to shore up its price on Monday.

He, however, made clear that there would be no subsidy for the planters as that might go against the WTO regulation.

Source: http://englishnews.thaipbs.or.th/rubber-planters-threaten-to-rally-to-demand-help-from-government

-- Thai PBS 2015-10-25

[Bluespunk]

"demand real actions from the government to help shore up rubber price which, he said, has dropped to a critical level of about 30 baht/kg in some areas.

He said rubber plants wanted the government to subsidise rubber price at 65 baht/kg and to force the Transport Ministry to increase of the use of raw rubber to pave roads and also to devise measures to increase rubber products so as to add value to raw rubber"

Idiot.

Edited October 25, 2015 by Bluespunk

[Reigntax]

Those rubber plants are very demanding and have an inflated opinion of their value. PM Junta should understand their situation very well.

[jacky54]

The price will bounce back, until then screw them

[dcutman]

Just curious, if the govt agreed with this crazy scheme.

And just say the price of rubber goes up to THB 120 per kilo next year.

How many farmers will be happy or accept THB 65 per kilo for a year or so?

[Pib]

He warned that rubber planters are in deep trouble and they no longer are afraid of the military junta.

And the junta was never afraid and still not afraid of the rubber planters.

When the dust settles the planters will submit another letter to the PM's office like they have done before.

[Nick167]

Huh! I though under the new regulations of the NCPO, no rallies or mobs are allowed and in doing so,all those involved will be immediately arrested.....or are there exceptions for Suthep's bastards.

[luudee]

I have the feeling that in the near future, more and more sectors of Thai industry will "demand" government help.

And I am not surprised ... they are lazy and inefficient without any planning skills.

If the government really wants to help, they need to teach these people how to properly run a business.

luudee

[toybits]

Since these people are in the Rubber Industry, perhaps Bouncing Checks will work.

[Srikcir]

Last Wednsday Prayut assured that rubber planters and tappers promised not to rally or to stage protests to demand government’s help to shore up rubber price, and that conflicts over low rubber price raised by rubber planters had been resolved.

Prayut also said that in light of low rubber price farmers need to grow supplementary crops, raise domesticated animals or "to do whatever" so that they have extra incomes.

Guess the farmers misunderstood Prayut's resolution.

.

[rubl]

Real imaginative.

"We produce rubber, you pay and find ways to get rid of it"

[Srikcir]

He warned that rubber planters are in deep trouble and they no longer are afraid of the military junta.

And the junta was never afraid and still not afraid of the rubber planters.

When the dust settles the planters will submit another letter to the PM's office like they have done before.

Following violent protests by rubber farmers in the south in summer of 2013, Yingluck doled out $80 per 0.4 acres (0.16 hectares) to help ease dropping rubber prices.

Prayut gave rubber farmers even greater lip service last year.

After 300-400 rubber farmers marched in protest against Prayut's government for higher rubber prices in December 2014, he gave them Bt8.7 billion in cash grants for subsidized fertilizer, and approved a Bt10-billion budget to shore up the price of concentrated latex up to Bt60 per kg (rubber sheet). At that time the market price was Bt50 per kg.

Why such generosity from Prayut who critisized Yingluck's populist policies? It's called "political reality." Juntas cannot survive a shutdown of a nation's wealth.

Rubber farmers were among the thousands of Southerners who travelled to Bangkok to join the mass rallies that paralyzed Yingluck Shinawatra's government in January 2014. The South is home to the ultra-royalists supporting the Democrat Party that won all the Southern provinces in the 2011 election.

They expected that when the junta came into power, the rubber price would be increased by the junta. The rubber farmers had accused PM Yingluck of lavishing state subsidies on its rice farming electoral base at the expense of the rest of the country.

It appears the rubber farmers want their part of the "lavishing" for their support of the junta.

[maoro2013]

Don't forget the government propped up the price earlier and created a huge stockpile. Planters are now paying the price for the government's continual meddling in the market.

Yes the government does have something to answer for, although it wasn't the current government.

[Eric Loh]

He warned that rubber planters are in deep trouble and they no longer are afraid of the military junta.

And the junta was never afraid and still not afraid of the rubber planters.

When the dust settles the planters will submit another letter to the PM's office like they have done before.

Following violent protests by rubber farmers in the south in summer of 2013, Yingluck doled out $80 per 0.4 acres (0.16 hectares) to help ease dropping rubber prices.

Prayut gave rubber farmers even greater lip service last year.

After 300-400 rubber farmers marched in protest against Prayut's government for higher rubber prices in December 2014, he gave them Bt8.7 billion in cash grants for subsidized fertilizer, and approved a Bt10-billion budget to shore up the price of concentrated latex up to Bt60 per kg (rubber sheet). At that time the market price was Bt50 per kg.

Why such generosity from Prayut who critisized Yingluck's populist policies? It's called "political reality." Juntas cannot survive a shutdown of a nation's wealth.

Rubber farmers were among the thousands of Southerners who travelled to Bangkok to join the mass rallies that paralyzed Yingluck Shinawatra's government in January 2014. The South is home to the ultra-royalists supporting the Democrat Party that won all the Southern provinces in the 2011 election.

They expected that when the junta came into power, the rubber price would be increased by the junta. The rubber farmers had accused PM Yingluck of lavishing state subsidies on its rice farming electoral base at the expense of the rest of the country.

It appears the rubber farmers want their part of the "lavishing" for their support of the junta.

The rubber farmers must be kicking themselves for supporting Suthep and a coup. They could have got more with Yingluck with their road blockages and Dem raising a storm in Parliment. Yingluck will be pressure to pay a good subsidy to counter her lavish rice subsidy. Really backfired for the southerners where much of their well being depends on the rubber industry. Will even erode some of Dem supporters too.

[kingalfred]

So the fact that the rubber planters come from southern provinces encourages the peau thai red apologists to attack them. Pathetic northern losers

[LivinLOS]

So the fact that the rubber planters come from southern provinces encourages the peau thai red apologists to attack them. Pathetic northern losers

No I think its just clear the hypocrisy of a dictatorship trying to make populist policies of elected governments illegal, and put in unelected authority to block any that they dont wish to happen.. While at the same time passing out populist policies themselves.

Fairly obvious no ??

[Rimmer]

A troll post in caps has been removed:

Please read the forum rules if you wish to post on here, in particular this one:

11) You will not post slurs, degrading or overly negative comments directed towards Thailand, specific locations, Thai institutions such as the judicial or law enforcement system, Thai culture, Thai people or any other group on the basis of race, nationality, religion, gender or sexual orientation.

[Ulic]

Someone needs to tell the rubber planters that article 44 only works in Thailand and will do

nothing to raise the price of rubber world wide.

[Bluespunk]

So the fact that the rubber planters come from southern provinces encourages the peau thai red apologists to attack them. Pathetic northern losers

No I think its just clear the hypocrisy of a dictatorship trying to make populist policies of elected governments illegal, and put in unelected authority to block any that they dont wish to happen.. While at the same time passing out populist policies themselves.

Fairly obvious no ??

The rice scheme wasn't a populist policy.

It was the most inept, economically moronic, stupidity imaginable.

It was utterly crass thinking and showed a complete failure to grasp reality.

It was never going to work and no one with an ounce of common sense was surprised when it crashed and burned.

It was criminally irresponsible and a disaster for Thailand's rice industry and the farmers who depended upon it for their living.

It was a betrayal of those who PT claimed to support by the end.

Those responsible for it deserve everything the legal system can throw at them.

Edited October 26, 2015 by Bluespunk

[axact]

Why is it Thai's seem to think they are exempt from market forces and that their Goverments should bail them out because of their faliure to budget for lean years ?

[Srikcir]

This article was originally posted in TV on 2015-10-25 !

[anotheruser]

Don't do anything to encourage more indiscriminate raping of the forests to make room for more rubber farms.

[ClutchClark]

Don't do anything to encourage more indiscriminate raping of the forests to make room for more rubber farms.

Perhaps you mean Palm Oil?

Nobody has planted a rubber tree in atleast a few years.

[anotheruser]

I mean both. Rubber tree plantations are going up all around SE Asia. Nobody has planted one in years? Are you sure about that?

[cooked]

So when the price was high these guys went about clearing virgin jungle and planted and planted. Now, big surprise, the price has dropped and the rubber trade is increasingly turning to synthetics.

This is the 'Somchai made money growing melons last year so let's all of us grow melons' economic planning strategy in Thailand.

[ClutchClark]

So when the price was high these guys went about clearing virgin jungle and planted and planted. Now, big surprise, the price has dropped and the rubber trade is increasingly turning to synthetics.

This is the 'Somchai made money growing melons last year so let's all of us grow melons' economic planning strategy in Thailand.

Cooked, the reason that farmers grow products is because consumers want those products. The ultimate responsibility falls to consumers.

So far, there has not been one post on this thread which suggests any knowledge of rubber tree farming or the small farmer culture which exists in Thailand. Instead, everyone here just displays the "hate".

You don't even know why and when synthetic rubber is used yet you don't hesitate to throw the topic around. BTW, your introducing the subject of synthetic rubber in the manner you did clearly shows your ignorance on the subject.

[cooked]

So when the price was high these guys went about clearing virgin jungle and planted and planted. Now, big surprise, the price has dropped and the rubber trade is increasingly turning to synthetics.

This is the 'Somchai made money growing melons last year so let's all of us grow melons' economic planning strategy in Thailand.

Cooked, the reason that farmers grow products is because consumers want those products. The ultimate responsibility falls to consumers.

So far, there has not been one post on this thread which suggests any knowledge of rubber tree farming or the small farmer culture which exists in Thailand. Instead, everyone here just displays the "hate".

You don't even know why and when synthetic rubber is used yet you don't hesitate to throw the topic around. BTW, your introducing the subject of synthetic rubber in the manner you did clearly shows your ignorance on the subject.

Yes, I have noticed that your posts are generally sympathetic. No hate in my post, but possibly I detect more than a little in yours.

So to get to your post, if you produce too much rubber, prices go down. Correct me if I'm wrong. If 'the ultimate responsibility falls to consumers' then you agree with me.

Synthetic rubber started to be developed before the second world war and now represents two thirds of all rubber production and are rising.

I don't need to know anything about rubber tree farming (I do) to state these facts.. I also know that synthetic rubber is replacing natural rubber more and more.

Price of natural rubber, Singapore at the moment:around $1420 - $1791 /Ton, about ฿54 / Kg

Price of synthetic rubber :around $2000 / ton., that's about ฿70 / Kg. On the market.

There is a large world stock or rubber (both synthetic and natural) surplus at the moment. Production of both rubbers have reduced by about 75% since 2013 due to this.

A quote:

Natural forest, reserved forest and household backyard forests have been destroyed for rubber planting. This is especially under 'the 'Rubber Planting Promotion to Increase Income Level Project'. which started in 2004. (They gain land rights over cleared forest).

It is important to note that there has not been this kind of support to other cash crops such as oil palm, rice, cassava or sugar cane.

http://www.rubberstudy.com/documents/WebSiteData_Aug2015.pdf

Furthermore, your remark that I don't appreciate small holders' struggles to make a living was very much uncalled for in my case at least. I have sympathy for these farmers that have been forced to cut down their fruit trees, transform their rubber forests into rubber farms and to use large quantities of fertiliser and weed killer. However rubber is an evil crop from an environment point of view and the farms can go transform themselves back inti secondary forests as far as I am concerned.

[ClutchClark]

So when the price was high these guys went about clearing virgin jungle and planted and planted. Now, big surprise, the price has dropped and the rubber trade is increasingly turning to synthetics.

This is the 'Somchai made money growing melons last year so let's all of us grow melons' economic planning strategy in Thailand.

Cooked, the reason that farmers grow products is because consumers want those products. The ultimate responsibility falls to consumers.

So far, there has not been one post on this thread which suggests any knowledge of rubber tree farming or the small farmer culture which exists in Thailand. Instead, everyone here just displays the "hate".

You don't even know why and when synthetic rubber is used yet you don't hesitate to throw the topic around. BTW, your introducing the subject of synthetic rubber in the manner you did clearly shows your ignorance on the subject.

Yes, I have noticed that your posts are generally sympathetic. No hate in my post, but possibly I detect more than a little in yours.

So to get to your post, if you produce too much rubber, prices go down. Correct me if I'm wrong. If 'the ultimate responsibility falls to consumers' then you agree with me.

Synthetic rubber started to be developed before the second world war and now represents two thirds of all rubber production and are rising.

I don't need to know anything about rubber tree farming (I do) to state these facts.. I also know that synthetic rubber is replacing natural rubber more and more.

Price of natural rubber, Singapore at the moment:around $1420 - $1791 /Ton, about ฿54 / Kg

Price of synthetic rubber :around $2000 / ton., that's about ฿70 / Kg. On the market.

There is a large world stock or rubber (both synthetic and natural) surplus at the moment. Production of both rubbers have reduced by about 75% since 2013 due to this.

A quote:

Natural forest, reserved forest and household backyard forests have been destroyed for rubber planting. This is especially under 'the 'Rubber Planting Promotion to Increase Income Level Project'. which started in 2004. (They gain land rights over cleared forest).

It is important to note that there has not been this kind of support to other cash crops such as oil palm, rice, cassava or sugar cane.

http://www.rubberstudy.com/documents/WebSiteData_Aug2015.pdf

Furthermore, your remark that I don't appreciate small holders' struggles to make a living was very much uncalled for in my case at least. I have sympathy for these farmers that have been forced to cut down their fruit trees, transform their rubber forests into rubber farms and to use large quantities of fertiliser and weed killer. However rubber is an evil crop from an environment point of view and the farms can go transform themselves back inti secondary forests as far as I am concerned.

Cooked, well done ;-)

But you do reslize that synthetic rubber also has environmentsl costs?

And that the manufacturers decision to trade between synthetic and natural is largely dependent on the price of crude.

Although I am not certain about large corporate palm oil interests not receiving subsidies as you suggest. I will need to check with the in-laws. One of the reasons that governments provide incentives for rubber tree production is because it is cost prohibitive to enter into this type of agriculture due to the large initial investment and the fact you don't even start getting a harvest for 3-5 years after planting. This is also why the notion that farmers should just cut down their rubber trees and grow another crop are simplistic beyond belief. Not to mention the fact that there is no shortsge of other food crops in Thailand so simply ceasing rubber production and growing another crop will only serve to create a market surplus of that other crop and drive down those prices. Have you ever visited small farms? Have you ever visited family owned rubber tree farms? The land has more than rubber trees growing on it...in other words, it is not a mono-crop. The bottom line is the country of Thailand has benefited greatly in years past thanks to the export of latex and that is why it has been promoted and subsidized.

As for your issues with slash & burn agriculture or clearing of forests, that is the result of population growth creating an ever expanding consumer base. What is your career? I have not met a person yet who does not make a living by exploiting natural resources either directly or indirectly. If you are the first then my hats off to ya ;-)

Primarily, I am just amazed at the amount of hate on this thread and one other directed at rubber tree farmers.

Cheers

Edited October 27, 2015 by ClutchClark

[ClutchClark]

Cooked,

My apologies for lumping you in with the usual "Hate Brigade" that exists here at TV spewing negativity down on most every topic.

I realize that is not what you are about.

Edited October 27, 2015 by ClutchClark

[cooked]

So when the price was high these guys went about clearing virgin jungle and planted and planted. Now, big surprise, the price has dropped and the rubber trade is increasingly turning to synthetics.

This is the 'Somchai made money growing melons last year so let's all of us grow melons' economic planning strategy in Thailand.

Cooked, the reason that farmers grow products is because consumers want those products. The ultimate responsibility falls to consumers.

So far, there has not been one post on this thread which suggests any knowledge of rubber tree farming or the small farmer culture which exists in Thailand. Instead, everyone here just displays the "hate".

You don't even know why and when synthetic rubber is used yet you don't hesitate to throw the topic around. BTW, your introducing the subject of synthetic rubber in the manner you did clearly shows your ignorance on the subject.

Yes, I have noticed that your posts are generally sympathetic. No hate in my post, but possibly I detect more than a little in yours.

So to get to your post, if you produce too much rubber, prices go down. Correct me if I'm wrong. If 'the ultimate responsibility falls to consumers' then you agree with me.

Synthetic rubber started to be developed before the second world war and now represents two thirds of all rubber production and are rising.

I don't need to know anything about rubber tree farming (I do) to state these facts.. I also know that synthetic rubber is replacing natural rubber more and more.

Price of natural rubber, Singapore at the moment:around $1420 - $1791 /Ton, about ฿54 / Kg

Price of synthetic rubber :around $2000 / ton., that's about ฿70 / Kg. On the market.

There is a large world stock or rubber (both synthetic and natural) surplus at the moment. Production of both rubbers have reduced by about 75% since 2013 due to this.

A quote:

Natural forest, reserved forest and household backyard forests have been destroyed for rubber planting. This is especially under 'the 'Rubber Planting Promotion to Increase Income Level Project'. which started in 2004. (They gain land rights over cleared forest).

It is important to note that there has not been this kind of support to other cash crops such as oil palm, rice, cassava or sugar cane.

http://www.rubberstudy.com/documents/WebSiteData_Aug2015.pdf

Furthermore, your remark that I don't appreciate small holders' struggles to make a living was very much uncalled for in my case at least. I have sympathy for these farmers that have been forced to cut down their fruit trees, transform their rubber forests into rubber farms and to use large quantities of fertiliser and weed killer. However rubber is an evil crop from an environment point of view and the farms can go transform themselves back inti secondary forests as far as I am concerned.

Cooked, well done ;-)

But you do reslize that synthetic rubber also has environmentsl costs?

And that the manufacturers decision to trade between synthetic and natural is largely dependent on the price of crude.

Although I am not certain about large corporate palm oil interests not receiving subsidies as you suggest. I will need to check with the in-laws. One of the reasons that governments provide incentives for rubber tree production is because it is cost prohibitive to enter into this type of agriculture due to the large initial investment and the fact you don't even start getting a harvest for 3-5 years after planting. This is also why the notion that farmers should just cut down their rubber trees and grow another crop are simplistic beyond belief. Not to mention the fact that there is no shortsge of other food crops in Thailand so simply ceasing rubber production and growing another crop will only serve to create a market surplus of that other crop and drive down those prices. Have you ever visited small farms? Have you ever visited family owned rubber tree farms? The land has more than rubber trees growing on it...in other words, it is not a mono-crop. The bottom line is the country of Thailand has benefited greatly in years past thanks to the export of latex and that is why it has been promoted and subsidized.

As for your issues with slash & burn agriculture or clearing of forests, that is the result of population growth creating an ever expanding consumer base. What is your career? I have not met a person yet who does not make a living by exploiting natural resources either directly or indirectly. If you are the first then my hats off to ya ;-)

Primarily, I am just amazed at the amount of hate on this thread and one other directed at rubber tree farmers.

Cheers

Nice post. I have lived in small villages all my life and here in Thailand I live in a small village where I don't think anyone has a larger holding than 15 rai (apart from the Chinese mafia that are stealing land, another factor that is becoming a part of life here).

Wouldn't it be better to divert money from subsidising slash and burn to the building of a couple of factories exploiting available rubber?

I had the same discussion concerning rice cultivation, people here were telling us we should 'wean That farmers off rice farming'. The only conceivable crop here is rice, one crop a year. I do know about subsistence farming and I have visited a rubber farm. I help my son in law with the rice and I don't like it! Turning yellow now so that'll be ฿25 - 35 000 for a year's income.