Thai Cabinet agrees to buy 100,000 tons of rubber from farmers

[webfact]

Cabinet agrees to buy 100,000 tons of rubber from farmers

BANGKOK, 13 January 2016 (NNT) – The Cabinet has resolved to assist rubber farmers by buying 100,000 tons of rubber from them while a committee is being set up to find sustainable solutions to rubber problems.

Prime Minister Gen Prayut Chan-o-cha announced that a decision was made at this week’s Cabinet meeting to purchase rubber totaling 100,000 tons directly from planters. The move is aimed at allowing supplies to be delivered to processors without having to go through the market.

Officials of eight related ministries have been tasked with the purchase while the rubber to be bought must come from new lots, rather than from stockpiles. The Prime Minister said the buying price has not been set but it will be slightly higher than in the market, adding that the rate will have to be agreed upon between the government and the farmers.

In addition, Gen Prayut disclosed that a 15-member committee is being formed to draw up measures to address issues in the rubber industry in a sustainable manner. Eight of them have already been appointed, whereas the remaining seven will be representatives of farmers.


-- NNT 2016-01-13

[webfact]

PWO told to buy 100,000 tonnes of rubber from farmers



BANGKOK: -- The Public Warehouse Organisation was today (Tuesday) instructed by the cabinet to buy directly from rubber farmers 100,000 tonnes of raw rubber and rubber sheets at “leading” market price.

Current market price averages 35 baht/kg and it is expected that the “leading” or above-market price offered by the PWO will help drive the market price up.

Deputy Prime Minister Prawit Wongsuwan said officials concerned would go directly to rubber farmers to buy rubber at price agreed upon by the two parties. Local cooperatives may be brought in to help out in the purchases, he added.

Meanwhile, Prime Minister Prayut Chan-ocha said talks today between rubber farmers’ representatives and authorities concerned went on smoothly with the farmer now having positive understanding of the government.

As for the new rubber board which is yet to be formed, the problem pointed out that the delay in the setting up of the panel stems from disagreement within the farming sector because several leading figures have wanted seats in the panel.

He asked for sympathy and understanding from rubber farmers saying that the government cannot afford to buy all the rubber and have them stored in warehouses and then left to rot.

The rubber to be bought from farmers by the PWO will be utilized and processed into products with added value by SMEs supported by the government.

He asked for advice from the media about how to do with 2.6 million tonnes of rubber surplus from the annual yield of 4 million tonnes with 1.4 million tonnes expected to be exported.

Source: http://englishnews.thaipbs.or.th/pwo-told-to-buy-100000-tonnes-of-rubber-from-farmers


-- Thai PBS 2016-01-13

[noitom]

Rubber is the new Thai rice. :eight Thai bureaucrats dipping in for some skim

[rasmus5150]

What does "leading" market price mean? I hope that these deals will be made transparent so there will be no corruption.......

I also hope for Peace on Planet Earth

[Thailand]

Impeachment on the horizon post elections?

OK, what elections and amnesty has already been given.

And if Miss Y's defence team are any good at all they have just been handed a bucket load of ammunition.

[ramrod711]

Yesterday, when the rubber situation was so much different than today.

He explained that about four million tonnes of rubber were produced each year of which 1.4 million tonnes were to be consumed domestically and the rest to be exported.

So where can we find the money to buy them all? Or should we buy them all and leave them rotten in the warehouses? asked the prime minister.

[maoro2013]

So who of their mates will the 100,000 tones come from, and what farmers will be involved in the discussion on price?

Sounds like the southern farmers will benefit mostly because they are making all the noise, us north eastern lot will probably get nothing and yet we are an increasingly bigger percentage of the market, especially as the southern plantations age.

[jaltsc]

"The Cabinet has resolved to assist rubber farmers by buying 100,000 tons of rubber from them..."

Fantastic!!! 100,000 tons of rubbers should prevent unwanted pregnancies and STDs for the next few centuries. Now if we can only get all those little d--kheads to use them.

[BSJ]

Is this the same "Prime Minister Gen Prayut Chan-o-cha" that said a few days ago something along the lines: the government was not going to give anymore help to the rubber farmers?

And the 100,000 tonnes, does that include the 3000 tonnes for tennis courts?

Our village really needs a rubber coated tennis court....the excitement swells!......and tennis rackets and balls....

[LannaGuy]

hypocrites

[oztaurus]

.... and in other news:

New Thai charter provision to prevent government from wasteful spendings

[AlQaholic]

Well it's our tax money that goes into that rubber, we are now lucky owners of a pile of rubber somewhere.

Mebe they can make more stuff out of rubber? such as rubber d....s, rubber paint, rubber toys, rubber shoes, rubber hats, rubber knee protectors, rubber clothes, rubber bags, rubber rubber, rubber roads, rubber houses, rubber car, rubber motorcycle, rubber boat, rubber sitting mat, rubber container, rubber chair, rubber table, rubber bicycle, rubber anything?

[tomyummer]

Hmmm....asking for 60 baht subsidy when the price is 34 baht. That is a huge handout to farmers. And how many of these cabinet members own rubber plantations?

[rubl]

So who of their mates will the 100,000 tones come from, and what farmers will be involved in the discussion on price?

Sounds like the southern farmers will benefit mostly because they are making all the noise, us north eastern lot will probably get nothing and yet we are an increasingly bigger percentage of the market, especially as the southern plantations age.

I understand that the NorthEast produces less than 25% of Thai rubber and in less quality than the rubber from down South. Something to do with water and maybe soil. With the current drought I wonder how those tress are doing up North?

No idea how the 100,000 tonnes will be bought, but it's just a token what with total production more than 4m tonnes. Also the fraction above market price with market price still very low will not make farmers real happy. 35 Baht per kilogram is way below the 90 Baht they got two, three years ago. Prices really went down.

At least 100,000 tonnes at 35 Baht/kg is only 3.5 billion Baht (assuming there are 1000kg in a tonnes?) . Furthermore the potential losses seem fairly limited and the scheme is not positioned as 'self-financing'.

[rubl]

Hmmm....asking for 60 baht subsidy when the price is 34 baht. That is a huge handout to farmers. And how many of these cabinet members own rubber plantations?

Asking but not getting that's the important thing.

[LannaGuy]

Hmmm....asking for 60 baht subsidy when the price is 34 baht. That is a huge handout to farmers. And how many of these cabinet members own rubber plantations?

Asking but not getting that's the important thing.

your hero's are backtracking old fellow is this going to be a 'populist' policy? subsidising farmers? now where have we heard that before?

[Robbie Dye]

Just as well there isn't a banana surplus!

[Caveat Emptor]

I will not bow to threats or intimidation.

[jayboy]

http://www.thestar.com.my/news/regional/2016/01/12/thai-junta-pulls-a-yingluck-military-regime-orders-ministries-to-buy-rubber-from-struggling-farmers/

[MZurf]

Seems like the hideous monk is still owed some favors after his assistance in creating the excuse for the coup.

[Eric Loh]

I wonder if the loans have ever been paid back to the Ag Bank for the rice scheme, or whether the Ag Bank is still calling the rotten rice good collateral on its books.

This is so similar to the rice scheme. The government bought the rice believing they could control the market and drive the price up. But the world price kept falling and losses mounted until the rice just sat and rotted.

Yingluck is on trial for negligence for almost this same thing. Are these boys going to join in a cell next to hers?

At least they put a cap on 100,000 ton of rubber, that's only 2,5% of the expected production compared to Yinglucks rice scheme that bought as much rice they could (even imported rice from Myanmar and Laos!) and payed over 50% over market price! You can also see that the rubber price has fallen 37% sins June last year and is at the lowest point in 6 years and is expected to be falling and the government said a price slightly over market price.

I estimate that they would spend 5 Billion Baht or less to buy the rubber and they expect to either sell it or use it, compare that to the loss for the rice scheme under Yingluck that is estimated to be over 500 Billion Baht.

​

You my friend is a optimist. You really think that buying 100,00 tons will appease the farmers when the annual output is 4.7 million tons? You think the farmers will accept a slightly over market price which now at Bt32 per kilogram when production cost is Bt64? Just listen to what Khun Soonthorn, chief coordinator of the south rubber farmers said that the price has to be Bt60 and give the government a time limit to solve this problem. Khun "I will not be intimidated" has relented and watch him relent more to the farmers demands.

[Denim]

Seems like the hideous monk is still owed some favors after his assistance in creating the excuse for the coup.

Yes, quiet an embarrassing 180 volte face from general Prayuth and his appointed minions. Would not be surprised to find that Suthep has a lot of dirty secrets regarding the planning of the coup that the government are keen don't get leaked to the press and public.

Still , no surprise really. Someone had to pay the piper ......pity its a different piper from day to day.

[diehard60]

Isn't this the same thing as with the rice farmers but only with rubber????? When this fails who is going to take the blame for it?????

[bangon04]

and a Thai ministry spokesman has announced that from now on to minimise roadside deaths, all roadside electricity poles are to ne made in Thai Rubber.

[pookiki]

A good use would be open checking accounts for all rubber farmers and then to make and distribute checkbooks and checks made of rubber as well.

[Hawk]

So the PM gave into threats and intimidation afterall.

[MZurf]

I suggest they make lots of rubber stamps that the administration can use on anything that comes from the "PM".

[phoenixdoglover]

I love the part about the government giving the 100,000 tons of newly acquired rubber to SME's, to turn into rubber products. I can just imagine all those 25 year old entrepreneurs, in the year 2016, whose dream is to innovate the production of rubber products. And the consumers, so happy to see new rubber items on the market that they never knew they needed before this prescient push by the government.

But I don't believe this SME thing is actually going to happen. Maybe a press conference with a few smiling innovators. All dutifully reported by NNT. And then the rubber will sit, stacked in warehouses, waiting for people to forget who put it there, and why.

Hate to say it; the "clown car" analogy is getting more appropriate.

[thelonius]

So who of their mates will the 100,000 tones come from, and what farmers will be involved in the discussion on price?

Sounds like the southern farmers will benefit mostly because they are making all the noise, us north eastern lot will probably get nothing and yet we are an increasingly bigger percentage of the market, especially as the southern plantations age.

I understand that the NorthEast produces less than 25% of Thai rubber and in less quality than the rubber from down South. Something to do with water and maybe soil. With the current drought I wonder how those tress are doing up North?

No idea how the 100,000 tonnes will be bought, but it's just a token what with total production more than 4m tonnes. Also the fraction above market price with market price still very low will not make farmers real happy. 35 Baht per kilogram is way below the 90 Baht they got two, three years ago. Prices really went down.

At least 100,000 tonnes at 35 Baht/kg is only 3.5 billion Baht (assuming there are 1000kg in a tonnes?) . Furthermore the potential losses seem fairly limited and the scheme is not positioned as 'self-financing'.

"At least 100,000 tonnes at 35 Baht/kg is only 3.5 billion Baht (assuming there are 1000kg in a tonnes?)"

The "framework" proposed by DPM Prawit for the purchase of rubber at above market prices actually allows for the purchase of 200,000 tonnes with a budget of 12 Billion baht which comes from an "emergency" budget apparently.

Cue rubl "self financing" losses mantra - though I do wonder when "costs" of a scheme become "losses"? (and when 500 billion becomes 700 billion depending upon the latest "facts", for that matter)

[JAG]

I wonder if the loans have ever been paid back to the Ag Bank for the rice scheme, or whether the Ag Bank is still calling the rotten rice good collateral on its books.

This is so similar to the rice scheme. The government bought the rice believing they could control the market and drive the price up. But the world price kept falling and losses mounted until the rice just sat and rotted.

Yingluck is on trial for negligence for almost this same thing. Are these boys going to join in a cell next to hers?

There is a dissimilarity between the rice scheme and this rubber handout. Rice scheme you sell. Rubber scheme you force the state enterprises to use the rubber. And where the state enterprises gets the money? From the tax payers. The inflated rubber price that the enterprises buy will just added to the eventual price. Whether it is mattresses for the military or gloves for the hospital, it add to operation costs and again tax payers. It is a zero sum game.

Not if you owe some " influential people" from south of Bangkok, (and the rubber growers who represent their power base) it's not.

It's called paying a debt!