8 Thai ministries to set aside budget to buy rubber

[webfact]

8 ministries to set aside budget to buy rubber



BANGKOK: -- Eight ministries were told by Prime Minister Prayut Chan-ocha to each set aside a fund to be used to buy rubber as a means to stabilize rubber price.

Government spokesman Maj-Gen Sansern Kaewkamnerd said the Transport, Interior, Public Health, Education, Defence, Industry, Commerce and Agriculture ministries would report to the office of the secretary-general of the cabinet the exact amount of rubber that they want to purchase.

The spokesman said that rubber sheets now are priced at 34 baht/kg.

It is not known how each of the eight ministries will make use of the rubber although there are talks about increasing the amount of rubber in road construction and turning rubber into products such as rubber pillow and rubber gloves.

Meanwhile PDRC foundation secretary-general Suthep Thuagsuban said he agreed with rubber farmers’ demand for the government to subsidise rubber price but begged them to be patient and not to stage a protest against the government.

Suthep said he had trust in the prime minister but did not trust the staffs around him, pointing out that those responsible for helping farmers are divided.

He went on saying that he had made some suggestions to Deputy Prime Minister Somkid Jatusripitak about how rubber farmers should be helped and the response from Mr Somkid is positive.

Source: http://englishnews.thaipbs.or.th/8-ministries-to-set-aside-budget-to-buy-rubber


-- Thai PBS 2016-01-12

[Somtamnication]

When life gives you lemons, you make lemonade. WIth all the rubber prices falling, make condoms! Eight departments?

[tbthailand]

It is not known how each of the eight ministries will make use of the rubber

corner-bumpers for submarines...

[ezzra]

On one hand the only yesterday Macho PM and the government saying to the farmers don't relay on us and stand on

your own 2 feet and we don't have spare money for you,, on the other, 8 ministries were told to buy the rubber from the farmers,

these Thai governments just can't help themselves to act like a nanny to any fledging and clueless

farmers of this country,

[worgeordie]

Another U-turn,just yesterday they were saying Thailand had no money,

to support the Rubber tappers,as the warehouses slowly empty of Rice,

they will be filling up with Rubber.

regards Worgeordie

[Langsuan Man]

The Waffling Military Dictatorship

[alant]

and this differs from the other much criticised rice scheme how?

[bark]

Why not make every tourist buy one kilo; when they leave the country. If they sell at the airport they can increase the price to 100 baht/kg.

40 million visitors every year. Or make every tourist buy one Goodyear tire. All sorted !

[TheCruncher]

It is not known how each of the eight ministries will make use of the rubber

Why think further than your next meal when making a decision that involves the future well being of a whole country. Tells us again a lot about the people ruling this country currently

[JAG]

Why not make every tourist buy one kilo; when they leave the country. If they sell at the airport they can increase the price to 100 baht/kg.

40 million visitors every year. Or make every tourist buy one Goodyear tire. All sorted !

Or even buy a years supply of condoms.

I believe that you can get 365 out of a good year!

Bum bum!

I'll go now....

[JAG]

and this differs from the other much criticised rice scheme how?

Ask Suthep.

I rather suspect he will be amongst the chief beneficiaries!

[rubl]

and this differs from the other much criticised rice scheme how?

Don't know yet, lack of details, but as long as they don't call it 'self-financing' there will be an improvement already.

Mind you, I cannot understand why the government decided to buy rubber even though some posters suggested they needed to take care of their power base.

Does anyone know how many kg. rubber sheets the government still has in warehouses as part of the inheritance from the previous government? Any info on how natural rubber sheet quality might decrease over time?

[baboon]

^^

Please don't reply to that. He is just hunting for an angle to sidetrack the issue at hand.

[Evilbaz]

Suthep is not listed AFAIK as a big rubber plantation owner.

He is however amongst the biggest in palm oil and shrimp.

Any bets on the next subsidy push?

AS for the rice scheme - that subsidy was 50% over market price - I doubt we'll see that with rubber.

Edited January 12, 2016 by Evilbaz

[rubl]

^^

Please don't reply to that. He is just hunting for an angle to sidetrack the issue at hand.

Absolutely!

I mean if warehouses are still full with rubber sheets bought previously I'm more than likely to start wondering why this government wants to buy some more.

[ldiablo]

^^

Please don't reply to that. He is just hunting for an angle to sidetrack the issue at hand.

As usual.

[Srikcir]

Suthep is not listed AFAIK as a big rubber plantation owner.

He is however amongst the biggest in palm oil and shrimp.

Any bets on the next subsidy push?

AS for the rice scheme - that subsidy was 50% over market price - I doubt we'll see that with rubber.

Current market price: 34 baht/kg.

Requested price: 60 baht/kg.

Subsidy 176%

During 2014 and most of 2015 rubber farmers were asking for 80 baht/kg since the cost of production is 65 baht.kg. So even at 60 baht/kg we won't see the end of rubber farmers' demands.

[IAMHERE]

Rubber the new Rice ? And I thought Palm Oil was the new Rice.

[cooked]

The Thai rubber association pushed farmers into cultivating rubber, invading virgin forests and preventing traditional cultivation techniques involving mixed cultivation (fruit trees). They were obliged to use fertilisers, water regularly and keep the ground free of weeds. Now, surprise, too much rubber, not only in Thailand but world wide, synthetic rubber is slowly taking the market for certain applications over.and falling crude oil prices are making things worse.

The government has more than once said no more money for rubber, now they are getting more money for rubber which is partly being cultivated because of unwise government decisions. Work it out, the farmers should be paid to destroy their plantations and go back to traditional agriculture.

[Evilbaz]

Suthep is not listed AFAIK as a big rubber plantation owner.

He is however amongst the biggest in palm oil and shrimp.

Any bets on the next subsidy push?

AS for the rice scheme - that subsidy was 50% over market price - I doubt we'll see that with rubber.

Current market price: 34 baht/kg.

Requested price: 60 baht/kg.

Subsidy 176%

During 2014 and most of 2015 rubber farmers were asking for 80 baht/kg since the cost of production is 65 baht.kg. So even at 60 baht/kg we won't see the end of rubber farmers' demands.

You suck at Maths - recalculate.

Besides Prayeth has flat out refused to pay 60 THB/kg

[Evilbaz]

The Thai rubber association pushed farmers into cultivating rubber, invading virgin forests and preventing traditional cultivation techniques involving mixed cultivation (fruit trees). They were obliged to use fertilisers, water regularly and keep the ground free of weeds. Now, surprise, too much rubber, not only in Thailand but world wide, synthetic rubber is slowly taking the market for certain applications over.and falling crude oil prices are making things worse.

The government has more than once said no more money for rubber, now they are getting more money for rubber which is partly being cultivated because of unwise government decisions. Work it out, the farmers should be paid to destroy their plantations and go back to traditional agriculture.

I agree if you substitute " diversified " for "traditional" .

[Srikcir]

Another U-turn,just yesterday they were saying Thailand had no money,

to support the Rubber tappers,as the warehouses slowly empty of Rice,

they will be filling up with Rubber.

regards Worgeordie

Actually 200,000 tons of rubber was purchased by the Prayut government at 55-60 Bt/kg in 2015 at above market price as part of its Rubber Buffer Stock Program and placed into warehouses. The program was similar to Yingluck's Rice Pledge Program that withholding the rubber from the market would create a temporary shortage that would cause prices to "surge."

Deputy Agriculture Minister Amnuay Patise was confident that rubber sheets from the newly-harvested crops expected in mid-May would command between 65-75 baht/kg, thus making the government whole on its purchase price similar again to Yingluck's rice pledge program. Thereafter, Amnuay expected rubber prices will continue to improve. (2015-02-26)

[Orac]

I would have thought with all the new rubber stamps being made there would be a shortage of rubber by now.

[Srikcir]

Suthep is not listed AFAIK as a big rubber plantation owner.

He is however amongst the biggest in palm oil and shrimp.

Any bets on the next subsidy push?

AS for the rice scheme - that subsidy was 50% over market price - I doubt we'll see that with rubber.

Current market price: 34 baht/kg.

Requested price: 60 baht/kg.

Subsidy 176%

During 2014 and most of 2015 rubber farmers were asking for 80 baht/kg since the cost of production is 65 baht.kg. So even at 60 baht/kg we won't see the end of rubber farmers' demands.

You suck at Maths - recalculate.

Besides Prayeth has flat out refused to pay 60 THB/kg

The government has been paying 60Bt/kg to rubber farmers in its Rubber Buffer Stock Program in 2015 and promised throughout 2015 to get 60Bt/kg for the farmers. The Prayut government has made several G2G rubber deals with China and Russia for 60-63 Bt/kg compared to much lower market prices.

Yes, Prayut always denies subsidies to the farmers, then pays the rubber farmers. He now is requiring his ministers to cut their budgets to fund more rubber purchases under the RBS program. And you can be sure he'll pay at least 60 Bt/kg as assured by the Minster of Agriculture. Prayut cannot afford to lose Southern rubber farmers' political support and for the last 18 months he has faithfully compensated them on their demands.

[Srikcir]

and this differs from the other much criticised rice scheme how?

Don't know yet, lack of details, but as long as they don't call it 'self-financing' there will be an improvement already.

Mind you, I cannot understand why the government decided to buy rubber even though some posters suggested they needed to take care of their power base.

Does anyone know how many kg. rubber sheets the government still has in warehouses as part of the inheritance from the previous government? Any info on how natural rubber sheet quality might decrease over time?

I may stand corrected but Yingluck just paid outright compensation to rubber farmers based on their farm areas to shore up their income. She did not have a rubber pledge program as she did with rice.

In 2015 Prayut created a Rubber Buffer Stock program wherein the government purchased the rubber at above market prices and placed into warehouses until it could recoup its cost by cutting world supply and drive prices higher than 60 Bt/kg. The main operational difference between Prayut's program and Yingluck's program was that Prayut paid the farmers directly for receipt of the rubber while Yingluck only paid farmers when the rice was sold to third parties or G2G deals.

I hope the NACC is tracking the losses created by Prayut's RBS program. To be fair if Yingluck is responsible for the cost of her rice pledge program, so to Prayut.

[TheCruncher]

and this differs from the other much criticised rice scheme how?

Don't know yet, lack of details, but as long as they don't call it 'self-financing' there will be an improvement already.

Mind you, I cannot understand why the government decided to buy rubber even though some posters suggested they needed to take care of their power base.

Does anyone know how many kg. rubber sheets the government still has in warehouses as part of the inheritance from the previous government? Any info on how natural rubber sheet quality might decrease over time?

You should check your facts, It was the current government that stocked the warehouses with rubber.

[Srikcir]

"8 ministries to set aside budget to buy rubber"

In a normal fiduciary relationship between a nation's parliamentary legislature and executive branch, the legislature approves the total budgets for each ministry. The ministers only have discretionary authority to shift their approved budgets internally. But they do not have authority to shift budgets between ministeries!

The NLA approved each government ministery's budgets last year for fiscal year 10-01-2015 through 9-31-2016. Prayut's call for each ministery to reduce their existing budgets to create a slush fund to purchase rubber, at no doubt above market prices, violates the authority of the NLA granted under the NCPO Interim Charter!

So much for the rule of law and accountability.

Prayut could at least give the façade of following the law and either invoke Article 44 to make funds immediately available by his personal discretion or send a bill to the rubberstamp NLA to amend the FY 2016 budget.

EDIT: I just read in another article that ministries should allocate their budget to make room for the purchase of rubber products. This would be a legal use of their NLA approved budgets, albeit of questionable benefit to each ministery and open to corruption. But I doubt such a scheme to start buying massive amounts of rubber products (duckies?) is going to drive the GLOBAL market price of rubber to no less than 60 Bt/kg. Dracula Somkid must be turning over in his grave.

Edited January 12, 2016 by Srikcir

[rubl]

and this differs from the other much criticised rice scheme how?

Don't know yet, lack of details, but as long as they don't call it 'self-financing' there will be an improvement already.

Mind you, I cannot understand why the government decided to buy rubber even though some posters suggested they needed to take care of their power base.

Does anyone know how many kg. rubber sheets the government still has in warehouses as part of the inheritance from the previous government? Any info on how natural rubber sheet quality might decrease over time?

You should check your facts, It was the current government that stocked the warehouses with rubber.

Facts:

2014-08-26

"Yingluck's government spent 22 billion baht ($690 million) building rubber stockpiles under state-funded price support programs that included buying rubber at above-market rates.

The program mirrored a money-guzzling rice subsidy program that cost taxpayers billions of dollars and fueled opposition to the government from the establishment."

http://www.reuters.com/article/us-thailand-rubber-farmers-idUSKBN0GQ0I620140826

2014-09-03

"The Thai military government has sold half of the country's 200,000 tonne rubber stockpile to a Thai rubber exporter"

http://in.reuters.com/article/thailand-rubber-idINL3N0R40GN20140903

2014-10-13

"They also want the suspension of a plan to release 210,000 tonnes of stockpiled — but fast-degrading — rubber to the market, fearing it is set to further depress prices.

Yingluck swept to power in 2011 on a wave of support from the north and northeast on a pledge to pay up to 50 percent of the market price for rice — a policy she said was necessary to help the rural poor.

State largesse under her tenure also extended to rubber farmers."

http://www.taipeitimes.com/News/biz/archives/2014/10/13/2003601927

2015-11-04 (or 2015-04-11?)

"The junta, which in 2014 vowed to abolish populist policies used by Thailand's deposed leader Yingluck Shinawatra, said it would release about $365 million to aid rubber plantations and about $1 billion to rice farmers."

http://www.ibtimes.com/thailand-farmer-subsidies-thai-junta-announces-subsidies-avert-protests-2168526

Anyway, it would seem the current government will be increasing that stockpile of rubber sheets. No data on how much money will be involved. Till now only the intention is published.

Edited January 12, 2016 by rubl

[rubl]

"8 ministries to set aside budget to buy rubber"

In a normal fiduciary relationship between a nation's parliamentary legislature and executive branch, the legislature approves the total budgets for each ministry. The ministers only have discretionary authority to shift their approved budgets internally. But they do not have authority to shift budgets between ministeries!

The NLA approved each government ministery's budgets last year for fiscal year 10-01-2015 through 9-31-2016. Prayut's call for each ministery to reduce their existing budgets to create a slush fund to purchase rubber, at no doubt above market prices, violates the authority of the NLA granted under the NCPO Interim Charter!

So much for the rule of law and accountability.

Prayut could at least give the façade of following the law and either invoke Article 44 to make funds immediately available by his personal discretion or send a bill to the rubberstamp NLA to amend the FY 2016 budget.

EDIT: I just read in another article that ministries should allocate their budget to make room for the purchase of rubber products. This would be a legal use of their NLA approved budgets, albeit of questionable benefit to each ministery and open to corruption. But I doubt such a scheme to start buying massive amounts of rubber products (duckies?) is going to drive the GLOBAL market price of rubber to no less than 60 Bt/kg. Dracula Somkid must be turning over in his grave.

Pray tell us how that 'violates' the authority of the NLA. Do you mean to indicate that once a budget has been approved there are no circumstances which can force a government to reconsider, adjust up or downwards budgets?

Edited January 12, 2016 by rubl

[PeVee1st]

Get over it the world does not use rubber anymore!!