Prayut shuns rubber farmers' bid for help

[webfact]

RUBBER
Prayut shuns rubber farmers' bid for help
The Nation



Latex price slumps but govt has limited cash, PM says

BANGKOK: -- THE GOVERNMENT is facing a looming protest from rubber planters in the southern provinces and elsewhere who have been hit by extremely low latex prices, which have already dropped to about Bt25 per kilogram due to the global commodity price slump.

Prime Minister Prayut Chan-o-cha said yesterday that the government had limited funds to help farmers, as rubber planters in the southern provinces of Nakhon Si Thammarat and Trang sought extraordinary meetings of provincial councils of farmers tomorrow and Friday, respectively, in a bid to press for more government help.

A southern rubber planters' network will also hold a meeting on the issue next Tuesday.

Niwat Soonsan, chairman of the Trang council's working group on rubber plantations, said the price slump had seriously hurt many planters in provinces nationwide.

Previously, planters in 16 southern provinces threatened to rally due to the price slump.

Niwat said his farmers' council needed to find measures to help members and forward the proposals to Bangkok via the governor.

He complained that the government had not taken enough action to prevent latex prices from falling, thus hurting the livelihood of rubber planters and their families.

Farmers have also blamed middlemen for causing downward pressure on latex prices as they seek profit margins of Bt10-Bt12 per kilogram. Planters say a fair profit should be Bt4-Bt5 for converting latex into smoked rubber sheets.

Prayut said there are limited public funds to help farmers because it was not possible financially for the government to cover every project, including healthcare and the rice and rubber-subsidy programmes.

The prime minister added that crude oil prices have plunged to record lows worldwide, which has been a key factor underlying the global commodity and rubber price slump.

Wanichsan Ruangsri, a merchant in Trang, said he had to stop selling rubber seedlings during the prolonged slump, as some planters had switched to other crops such as palm and fruit trees.



Suffering workers angry

Aree Sina, a worker in a Trang rubber plantation, said her family was suffering due to the price slump and urged the government to find remedies to help tappers.

She said she would join a rally against the government since she and her husband now earned less than Bt300 a day, which was not enough to keep their children in school.

Aree said the price had to rise again to about Bt60 per kilo to make it viable for people to work on rubber plantations.

Another worker, Somjai Noonsong, said her family had incurred debts because of declining income from working in the rubber plantations. She said she would also join an anti-government rally.

The government last year approved a budget of Bt12 billion to help owners and workers of rubber plantations. According to this assistance programme, plantation owners received 60 per cent of the subsidy, or Bt900 per rai, while workers received the remaining 40 per cent of the money, or Bt600 per rai.

In 2014, the government also allotted considerable funds to help rubber planters when the price fell to about Bt33 per kilogram. The measures included a subsidy of Bt2,520 per rai and a credit facility worth Bt5 billion to shore up prices.

Source: http://www.nationmultimedia.com/national/Prayut-shuns-rubber-farmers-bid-for-help-30276220.html


-- The Nation 2016-01-06

[tbthailand]

Prayut said there are limited public funds to help farmers because it was not possible financially for the government to cover every project, including healthcare and the rice and rubber-subsidy programmes.

The self-appointed "PM" isn't going to get very far with the "we don't have enough money" excuses when the military is getting another budget increase and military spending has increased around 135% in less than 10 years...

Instead, he tries to make it sound like the choices are between one program to help people versus another program to help people...

[halloween]

Prayut said there are limited public funds to help farmers because it was not possible financially for the government to cover every project, including healthcare and the rice and rubber-subsidy programmes.

The self-appointed "PM" isn't going to get very far with the "we don't have enough money" excuses when the military is getting another budget increase and military spending has increased around 135% in less than 10 years...

Instead, he tries to make it sound like the choices are between one program to help people versus another program to help people...

I am confused. I have just finished replying to a post of yours decrying alleged junta populism, and now you are advocating it? Curiouser and curiouser said Alice.

But isn't it good to see a government that says it has limited funds? Or should Prayuth propose borrowing B2.2 trillion to prop up his popularity?

[aRobotnamedWAR]

Prayut said there are limited public funds to help farmers because it was not possible financially for the government to cover every project, including healthcare and the rice and rubber-subsidy programmes.

The self-appointed "PM" isn't going to get very far with the "we don't have enough money" excuses when the military is getting another budget increase and military spending has increased around 135% in less than 10 years...

Instead, he tries to make it sound like the choices are between one program to help people versus another program to help people...

they also took away my parents retirement money. ... and i believe everyone else too.

[ldiablo]

Prayut said there are limited public funds to help farmers because it was not possible financially for the government to cover every project, including healthcare and the rice and rubber-subsidy programmes.

The self-appointed "PM" isn't going to get very far with the "we don't have enough money" excuses when the military is getting another budget increase and military spending has increased around 135% in less than 10 years...

Instead, he tries to make it sound like the choices are between one program to help people versus another program to help people...

I am confused. I have just finished replying to a post of yours decrying alleged junta populism, and now you are advocating it? Curiouser and curiouser said Alice.

But isn't it good to see a government that says it has limited funds? Or should Prayuth propose borrowing B2.2 trillion to prop up his popularity?

Give it a few days and he will do an about face on this just like he does on everything else

[tbthailand]

Prayut said there are limited public funds to help farmers because it was not possible financially for the government to cover every project, including healthcare and the rice and rubber-subsidy programmes.

The self-appointed "PM" isn't going to get very far with the "we don't have enough money" excuses when the military is getting another budget increase and military spending has increased around 135% in less than 10 years...

Instead, he tries to make it sound like the choices are between one program to help people versus another program to help people...

I am confused. I have just finished replying to a post of yours decrying alleged junta populism, and now you are advocating it? Curiouser and curiouser said Alice.

But isn't it good to see a government that says it has limited funds? Or should Prayuth propose borrowing B2.2 trillion to prop up his popularity?

I know you are confused, and I know that you can't help it. Good luck in life, you need it.

[FourAces]

Supply and demand, chop down all of the rubber trees and grow fruit, then watch the price of rubber rise

[The Beguiled]

The sad fact in Thailand is that when the price of rubber was high (especially 4 years back when ball rubber was over 90 Baht a kilo) every person thought they could make the same money (get rich) and did not plan for the future as markets rise and fall.

Lots of folk went out and planted rubber trees and tendered their trees and when it was time to milk their trees in came the money.

Then the world oil price started to drop and drop and drop to the point where the cost of fertiliser; chemicals; transport costs; cutting tools; etc is now higher than the 16 Baht per kilo of ball rubber.

Result is that all these farmers, that saw lots of Baht, now have none and lots of these farmers went out and bought, on finance up to 7 years, new pickup vehicles.

If these farmers were better educated and did not go with the crowd mentality maybe there would be less broke farmers.

The Thai governments are also to blame for not providing better industry assistance packages (years back) in guiding farmers in budgeting and learning about markets.

Thais are envious of others and if they see someone doing better in a industry, them many go and follow (sheep mentality) and try to do the same without any idea of the costs. In my in laws village there was only one reasonable shop for food supplies (no ice cream; no real coffee shop) so I built a proper shop (stand alone brick with glass front doors; air cond; good lighting) that provided Ice cream to the level of Swensen's; coffee like Black Cannon and a supermarket like a mini Tesco/Big C.

Guess what some local Thais did....Yes, went and tried to copy without any idea of costs and their building (house front) are dirty from the dry season dust and the food hygiene is very questionable.

Envy and Sheep mentality, so how to fix?

"Amazing Thailand"

[Seastallion]

"Wanichsan Ruangsri, a merchant in Trang, said he had to stop selling rubber seedlings during the prolonged slump, as some planters had switched to other crops such as palm and fruit trees."

At least some of the farmers are starting to diversify.

What's the bet, though, that they ALL plant the same fruit, whichever has a good price NOW? And in four years time, the market will be flooded with that fruit, and prices will drop.

It's a never-ending cycle of poverty.

I don't like to generalsie, but it does seem that many Thais can simply not plan for the future, whether it be in 10 seconds after the lights have just turned red and they continue to accelerate, or in ten years when all their neighbours have planted the same crop and the price will inevitably drop.

[The Beguiled]

"Wanichsan Ruangsri, a merchant in Trang, said he had to stop selling rubber seedlings during the prolonged slump, as some planters had switched to other crops such as palm and fruit trees."

At least some of the farmers are starting to diversify.

What's the bet, though, that they ALL plant the same fruit, whichever has a good price NOW? And in four years time, the market will be flooded with that fruit, and prices will drop.

It's a never-ending cycle of poverty.

I don't like to generalsie, but it does seem that many Thais can simply not plan for the future, whether it be in 10 seconds after the lights have just turned red and they continue to accelerate, or in ten years when all their neighbours have planted the same crop and the price will inevitably drop.

You are so very, very right.

[bark]

Supply and demand, chop down all of the rubber trees and grow fruit, then watch the price of rubber rise

About 7 years ago the price of Rubber started to rise. The farmers started to plant more trees to make more money. They cut down coconut trees to plant more rubber trees. They were all making big money. Now just like oil, the price has gone to around the same price that it was 6-7 years ago.

These farmers all increased the number of trees, bought new trucks ( more new trucks were purchased in Trang/ 100,000 people 4 years ago then any other province. Thai manufactures also started to import from Malaysia because the Thai's kept increasing prices.

Should we feel sorry for them ? I think not.

[toybits]

He probably suspects that they will bounce right back.

[JOC]

>>Previously, planters in 16 southern provinces threatened to rally due to the price slump.<< Quote

No doubt the drastic measure will bring up commodity prices worldwide..........................

Maybe time for some Thai farmers to get a real job in the construction sector, replacing some of the Cambodians and Burmese !!

[somo]

Supply and demand, chop down all of the rubber trees and grow fruit, then watch the price of rubber rise

After waiting a few years for the trees to bear fruit the price of it will drop so according to you they should then chop those down and replant rubber which as you say will have risen in price by then and wait 5 or 6 years for that to mature?

In the meantime what are they going to eat?

It is too simplistic to put it all down to supply and demand which is why countries around the world subsidise the farming sectors of their economies.

Edited January 6, 2016 by somo

[BestBitterPhuket]

Subsidizing rubber would be crazy, but the government should help the farmers with financial help to facilitate a change to other crops. Most of them are poor and can't change to more profitable crops. The governor is failing them.

[thelonius]

Prayut said there are limited public funds to help farmers because it was not possible financially for the government to cover every project, including healthcare and the rice and rubber-subsidy programmes.

The self-appointed "PM" isn't going to get very far with the "we don't have enough money" excuses when the military is getting another budget increase and military spending has increased around 135% in less than 10 years...

Instead, he tries to make it sound like the choices are between one program to help people versus another program to help people...

I am confused. I have just finished replying to a post of yours decrying alleged junta populism, and now you are advocating it? Curiouser and curiouser said Alice.

But isn't it good to see a government that says it has limited funds? Or should Prayuth propose borrowing B2.2 trillion to prop up his popularity?

Not 2.2 trillion, it's actually 2.4 - 3 Trillion baht for his infrastructure projects to shore up his popularity with the Chinese. I'm not sure he cares much about the "little" Thais, especially the poor. From his interview with Al Jazeera;

We brought order to the beaches and organized trading and addressed infringements of the law, which had not been addressed before.

The previously elected governments had not addressed these problems because they concern poor people, right?

Poor people do things. Usually, they don’t do things correctly. Nothing serious but, for example they go around and sell things in the wrong places and then the nation is messy.

The beach is dirty, it’s not clean, and then the tourists aren’t happy.

Of course, he'll be popular with the "right" people, for a while..................

Edited January 6, 2016 by thelonius

[GeorgesAbitbol]

It is not good to any government to brush the mass problems aside....when the people are broke and with no hope, they do hopeless things....

[Melyn]

Where's the ministry of agriculture in all this? Surely they should monitor the markets, what other countries are supplying and the global demand? The whole macroeconomic picture.

Same with rice and sugar.

If the fishing industry and/or chicken industry gets hit then things will be pretty bad

[billd766]

The sad fact in Thailand is that when the price of rubber was high (especially 4 years back when ball rubber was over 90 Baht a kilo) every person thought they could make the same money (get rich) and did not plan for the future as markets rise and fall.

Lots of folk went out and planted rubber trees and tendered their trees and when it was time to milk their trees in came the money.

Then the world oil price started to drop and drop and drop to the point where the cost of fertiliser; chemicals; transport costs; cutting tools; etc is now higher than the 16 Baht per kilo of ball rubber.

Result is that all these farmers, that saw lots of Baht, now have none and lots of these farmers went out and bought, on finance up to 7 years, new pickup vehicles.

If these farmers were better educated and did not go with the crowd mentality maybe there would be less broke farmers.

The Thai governments are also to blame for not providing better industry assistance packages (years back) in guiding farmers in budgeting and learning about markets.

Thais are envious of others and if they see someone doing better in a industry, them many go and follow (sheep mentality) and try to do the same without any idea of the costs. In my in laws village there was only one reasonable shop for food supplies (no ice cream; no real coffee shop) so I built a proper shop (stand alone brick with glass front doors; air cond; good lighting) that provided Ice cream to the level of Swensen's; coffee like Black Cannon and a supermarket like a mini Tesco/Big C.

Guess what some local Thais did....Yes, went and tried to copy without any idea of costs and their building (house front) are dirty from the dry season dust and the food hygiene is very questionable.

Envy and Sheep mentality, so how to fix?

"Amazing Thailand"

In a similar vein and off topic (sorry) In the small rural Thai village where I live there are now 3 resorts within 2 km. They all get bookings at holiday times but rarely full and the rest of the time they are empty and just ticking over.

[DrTuner]

Farmers don't have guns or money, who cares about them.

[GeorgesAbitbol]

Farmers don't have guns or money, who cares about them.

they don't have money, but i am quite sure they have guns

[lovelomsak]

I thought he already helped them according to this article

Rubber and rice farmers to receive compensation money faster

BANGKOK, 23 December 2014 (NNT) - The Department of Agricultural Extension (DOAE) has adjusted its procedure on the payment of compensation to rubber farmers, allowing the latter to receive the payment faster. At least 300,000 of them are expected be paid by the end of this year.

DOAE Director General Olan Pitak said there are currently nearly 900,000 rubber farmers who have registered for the financial assistance. Under the scheme, they will receive 1,000 baht per rai in compensation for the declining prices of rubber.

A total sum of 107 million baht has already been paid to 10,388 households via the Bank for Agriculture and Agricultural Cooperatives (BAAC). The DOAE has set to compensate as many as 300,000 farmers by the end of this year.

As for rice farmers, the BAAC has so far distributed 30 billion baht to 2.8 million families. The remaining of around one million others who have been eligible for the money are expected to receive it by the end of December as well.

[JOC]

I thought he already helped them according to this article

Rubber and rice farmers to receive compensation money faster

BANGKOK, 23 December 2014 (NNT) - The Department of Agricultural Extension (DOAE) has adjusted its procedure on the payment of compensation to rubber farmers, allowing the latter to receive the payment faster. At least 300,000 of them are expected be paid by the end of this year.

DOAE Director General Olan Pitak said there are currently nearly 900,000 rubber farmers who have registered for the financial assistance. Under the scheme, they will receive 1,000 baht per rai in compensation for the declining prices of rubber.

A total sum of 107 million baht has already been paid to 10,388 households via the Bank for Agriculture and Agricultural Cooperatives (BAAC). The DOAE has set to compensate as many as 300,000 farmers by the end of this year.

As for rice farmers, the BAAC has so far distributed 30 billion baht to 2.8 million families. The remaining of around one million others who have been eligible for the money are expected to receive it by the end of December as well.

Look at the date:

Dec 23 2014

10-15.000 baht don't last forever.........................

Edited January 6, 2016 by JOC

[Enoon]

The sad fact in Thailand is that when the price of rubber was high (especially 4 years back when ball rubber was over 90 Baht a kilo) every person thought they could make the same money (get rich) and did not plan for the future as markets rise and fall.

Lots of folk went out and planted rubber trees and tendered their trees and when it was time to milk their trees in came the money.

Then the world oil price started to drop and drop and drop to the point where the cost of fertiliser; chemicals; transport costs; cutting tools; etc is now higher than the 16 Baht per kilo of ball rubber.

Result is that all these farmers, that saw lots of Baht, now have none and lots of these farmers went out and bought, on finance up to 7 years, new pickup vehicles.

If these farmers were better educated and did not go with the crowd mentality maybe there would be less broke farmers.

The Thai governments are also to blame for not providing better industry assistance packages (years back) in guiding farmers in budgeting and learning about markets.

Thais are envious of others and if they see someone doing better in a industry, them many go and follow (sheep mentality) and try to do the same without any idea of the costs. In my in laws village there was only one reasonable shop for food supplies (no ice cream; no real coffee shop) so I built a proper shop (stand alone brick with glass front doors; air cond; good lighting) that provided Ice cream to the level of Swensen's; coffee like Black Cannon and a supermarket like a mini Tesco/Big C.

Guess what some local Thais did....Yes, went and tried to copy without any idea of costs and their building (house front) are dirty from the dry season dust and the food hygiene is very questionable.

Envy and Sheep mentality, so how to fix?

"Amazing Thailand"

Fixing (among other things) this, requires what successive regimes (civil and military) have failed to demonstrate:

A sense of stewardship rather than dominion, a sense of duty rather than entitlement, a sense of public benefit rather than factional interest.

It is their way in this part of the world. Possibly they will change.

We can only wait and see what their hubris leads to.

Edited January 6, 2016 by Enoon

[shan777]

New rubber plantations need to be stopped this is the problem over production over supply of any product world wide has caused this price slump, every one is planting rubber trees ,and of course prices will fall ,a buyers market over production ,the golden goose has flowen , no goverment can be held to ransom because of over production of rubber.

[jaywalker]

What is truly sad, is that people, the world over, expect to be 'bailed out' in time of trouble by the government, instead of taking responsibility themselves for their own situations.

This attitude is most assuredly not specific to Thailand, this is just a Thai example of it.

People are turning into socialists/communists and don't even realize it.

Brainwashed into thinking Big Brother is the "Answer To All" from childhood.

[Srikcir]

"He complained that the government had not taken enough action to prevent latex prices from falling"

To be fair though Prayut has taken numerous actions, albeit without preventing further price cuts.

The Preface:

"When the junta came into power, we expected the rubber price would probably be increased," Rubber Farmer Somjai Chomkhwan, 2014-10-12

Prayut’s actions:

- signed an agreement with the Chinese government to sell China 400,000 tonnes of rubber at above market price of Bt60 per kg, to be delivered in 18 months. 2014-12-15

- sold to China’s Hainan company 200,000 tonnes of top-grade Thai rubber at above market price of 63 baht a kilogramme of which 20,000 tonnes have already been delivered with the rest to be delivered within 14 months. 2015-02-26

- Agreed with Indonesia, Malaysia, Myanmar, Laos, Cambodia and Vietnam to increase the natural rubber price to Bt60 per kilogram in 18 months. 2014-11-25

- Founded together with Indonesia, Malaysia and Thailand the IRCo to set up measures to maintain rubber price stability. One of the measures suggested was for the three countries to not expand their respective rubber plantation area for the time being in order to reduce supply. They will also slow down rubber exports. the three countries as part of their collaboration to collectively ensure fair and remunerative income for small rubber planters of the three countries. 2014-12-12

- Allocated the Agriculture Ministry with 10 billion baht to purchase up to 200,000 tonnes of rubber sheets … through the rubber buffer stock program. 2015-02-26

[Prayut] said the rise signified a positive sign, though in a short term, and what the government must do was to draw up contingency measures against recurrence of price drop in the future. 2015-05-23

Results: Failure

“Thailand’s approach [price supports] is just pushing the problem down the road,” Colin Hamilton, head of commodities research at Macquarie in London. The market needs supply to exit, not be encouraged.” 2015-04-02

Prayut's Problem:

Prayut has no problem telling rice farmers not to plant. But with rubber farmers it's not just a matter of supply & demand economics. The Democrats control the South in terms of elections and constitutional referendum. Junta failure to keep Southern rubber farmers profitable will lose farmers' loyalty to Democrats and strengthen opposition leadership.

Edited January 6, 2016 by Srikcir

[bendejo]

I've long heard some tough stuff about Nakhon Si Thammarat, not just the usual racketeering but they're openly rough about it. I would guess the local BiB are greased pretty well to keep out of the way of things. Used to see a gal from Surat Thani, she told me about the mafia's from either town having a 'war.' This kind of stuff may factor into Prayut's reasoning, and it's the poor farmers who get the short end. Extra irony is that when the price of rubber was up ten years ago the farmers probably lost bundles in the mafia gambling places.

[djjamie]

Prayut said there are limited public funds to help farmers because it was not possible financially for the government to cover every project, including healthcare and the rice and rubber-subsidy programmes.

The self-appointed "PM" isn't going to get very far with the "we don't have enough money" excuses when the military is getting another budget increase and military spending has increased around 135% in less than 10 years...

Instead, he tries to make it sound like the choices are between one program to help people versus another program to help people...

I am confused. I have just finished replying to a post of yours decrying alleged junta populism, and now you are advocating it? Curiouser and curiouser said Alice.

But isn't it good to see a government that says it has limited funds? Or should Prayuth propose borrowing B2.2 trillion to prop up his popularity?

I know you are confused, and I know that you can't help it. Good luck in life, you need it.

So did you decry Junta populism in a previous post while here you are advocating it?

If you reply please address what I said instead if ignoring it and then belittling me. (like you did with halloween).

[robertson468]

Last year I mentioned this to my Thai Family and suggested that they seriously consider either diversifying, which they needed to research (the Eldest Son has a Uni Degree and is fairly intelligent) to see where the demand lies, not this year, but in the coming ten+ years and to go in to those markets. Alternatively, the land is on the outskirts of Suratthani, which is growing like topsy. They could construct accommodation either through a Bank Loan or sell half the land to fund the development, or sell some and take a loan. They could not understand the concept that if a commodity is dropping, it is highly unlikely it's going to come bouncing back in the short term and one should really get out of that market, and in to a market where there is a strong and ongoing demand. Oh well, must get back on my spaceship and pop back to Mars!!

Edited January 6, 2016 by robertson468