Bangkok Administration to help buy 2,000 tons of Para rubber

[webfact]

BMA to help buy 2,000 tons of Para rubber

BANGKOK, 14 January 2016 (NNT) - Bangkok Governor M.R.Sukhumbhand Paribatra has instructed units under the Bangkok Metropolitan Administration (BMA) to buy 2,000 tons of Para rubber in an effort to help rubber farmers affected by the rubber price drop.

The BMA units include the culture and sports, environment, public park, social development and traffic departments. They will help buy rubber under the budget of 80 million baht to construct and repair many public facilities.

The governor said the rubber purchase would help maintain rubber price in the market until the economy recovered. The rubber purchase was the policy of the government, he added.


-- NNT 2016-01-14

[leeneeds]

Moving numbers from one graph to another graphs total,does that mean the sum of both graphs are the same and we get a balanced account, 80 million today and yesterday 200 million ,

[Oziex1]

Retuning favours, you scratch my back etc.

[bendywire]

Next up the rice farmers. Making a rod for their own backs here. It's again another false economic move. Rice package mark 2.

[worgeordie]

The burning question for me is what are they going to do with

the rubber,the same goes for the Education ministry,and the

Health Ministry which among others have been instructed to

purchase Para rubber by the PM.

regards Worgeordie

[spidermike007]

This is singularly the most disastrous policy of this disastrous administration, so far. I understand why the Yingbat did it. To buy votes. But, why is Little P. doing it? There are no votes. What on earth is this little man thinking? Is he thinking at all? Why should the government pay double the price of any commodity? Is this Soviet Russia? North Korea? What ever happened to the free market? They planted rubber and took a chance. They knew it was a commodity. Someone must have told them, somewhere along the line that the price all commodities rise and fall, like everything else. Get a grip. Be a man. Act like a man. Run your country like a man.

[wabothai]

All I am reading is that all kinds of government agencies are buying rubber which raises some serious questions.

[phoenixdoglover]

This idea of ministries and others government entities buying rubber is crazy. Instead, if they really want to support Thai rubber producers, they should have a "Made from Thai Rubber" quota for the finished goods they actually need. This would support the entire market and keep the gov agencies out of the rubber business.

[oldsailor35]

They need to make the ruling that rubber can be bought only, from the actual farm producer. Otherwise we all know that greedy men will buy it all up from farmers at knock down prices and then re sell to the govt., making a very nice profit. This is Thailand.

[mmh8]

wot is this the other version of rice buying? are we about to see someone else enter the ring?

[Srikcir]

Buying para rubber to "help maintain rubber price in the market until the economy recovered" has to mean that BA will be paying higher than market price. Paying market price currently would not otherwise shore up tumbling market prices. This is different than what Prayut ordered for his ministries.

Prayut ordered his ministries to purchase rubber products (ie., at current retail value) in order to increase demand with the hope that rubber prices would increase. While a naive approach to supply-demand economics, not illegal.

What BA is doing is not only contrary to its fiduciary responsibility to its taxpayers to assure effective use of their funds but also a violation of procurement laws. BA officals should be held personally liable for any excess price paid for para rubber over market value.

[rubl]

This idea of ministries and others government entities buying rubber is crazy. Instead, if they really want to support Thai rubber producers, they should have a "Made from Thai Rubber" quota for the finished goods they actually need. This would support the entire market and keep the gov agencies out of the rubber business.

I didn't know government agencies were getting into rubber business apart from the department responsible for talking with rubber farmers and cooperatives to decide on the price to be paid and getting the rubber bought into warehouses. Like rice warehouses there are independents taking care of that part for the government.

More to the topic point is the question "what is para rubber" and "what's the current market price of para rubber" ?

[rubl]

Buying para rubber to "help maintain rubber price in the market until the economy recovered" has to mean that BA will be paying higher than market price. Paying market price currently would not otherwise shore up tumbling market prices. This is different than what Prayut ordered for his ministries.

Prayut ordered his ministries to purchase rubber products (ie., at current retail value) in order to increase demand with the hope that rubber prices would increase. While a naive approach to supply-demand economics, not illegal.

What BA is doing is not only contrary to its fiduciary responsibility to its taxpayers to assure effective use of their funds but also a violation of procurement laws. BA officals should be held personally liable for any excess price paid for para rubber over market value.

'has to mean' should be 'might mean'.

I'm sure some of the possible price difference can be justified with 'the population wants Thai rubber', 'it's a more milieu friendly product than products made from oil', 'the CO2 footprint is more limited'. People from the West will understand such reasoning.

[Srikcir]

This is singularly the most disastrous policy of this disastrous administration, so far. I understand why the Yingbat did it. To buy votes. But, why is Little P. doing it? There are no votes. What on earth is this little man thinking? Is he thinking at all? Why should the government pay double the price of any commodity? Is this Soviet Russia? North Korea? What ever happened to the free market? They planted rubber and took a chance. They knew it was a commodity. Someone must have told them, somewhere along the line that the price all commodities rise and fall, like everything else. Get a grip. Be a man. Act like a man. Run your country like a man.

The answer is there are votes involved.

Immediately, the military needs the support of those sectors of Thai society that encouraged and support the coup. While they represent the minority of the Thai electorate, their vote of confidence in the junta through silence with coup policies is necessary for the junta to remain in power. And the military may need their support in the future should the need for another coup arise.

In the longer term, the military needs to assure that the next elected government comes from that same support base that will continue to follow the junta's national agenda and protect the independent sovereignty of the military. Under those political conditions, the military can avoid another coup exercise.

[GOLDBUGGY]

A nice gesture. But I hardly think that buying 2,000 Tons of Rubber when there is +4 Million Tons out there, would even cause a dent in Rubber Prices.

[rubl]

A nice gesture. But I hardly think that buying 2,000 Tons of Rubber when there is +4 Million Tons out there, would even cause a dent in Rubber Prices.

... or rubber mountain