Thai govt to buy rubber from growers at 45 baht/kg

[Mr Money Bags]

One thing is clear that the days of small rubber holders who form the majority of suppliers are numbered. The cost of producing rubber in Thailand has been on the rise over the last few years. Labour, chemical, transportation, land and borrowing costs are quite daunting for small farmers. Some big rubber producing and processing companies like Thai Hua Rubber has already strategized well and moved over to Laos and Cambodia. Their business model is to have the plantations outside Thailand and concentrate on trading and manufacturing plus a healthy dose of R&D. The government should realize this and formulate strategies along this model and stop encouraging the farmers by subsidies which only harden their mentality to refuse change.

I agree. An intermediate step could be to let small farmers to form cooperations to share/shoulder costs and be able to put a more united front towards the rubber processing industry they sell their raw rubber to.

What stops these cooperatives (I think this is what you mean) from becoming gouging collusion-oriented groups?

Just wondering......

You're Welcome!!

[Ulic]

So who decides which farmers get to sell there rubber for 20% above market rates.

[sawadee1947]

So PM breaks his word (no subsidies to any farmer) Well, time to rehab Yingluck

[rubl]

So PM breaks his word (no subsidies to any farmer) Well, time to rehab Yingluck

Are you referring to Ms. Yingluck possibly having broken her word before or are do you have the misconception of equating the Prayuth subsidy with Ms. Yingluck's 'self-financing' RPPS which lost 500++ billion?

[phoenixdoglover]

Isn't this almost the same as the rice scheme? It will be interesting to see how this pans out.

All Thai government subsidize agriculture, the details are important. They are buying a tiny amount of subsidized rubber that they will actually use for development projects. They are only buying 100k tons, which they will use, for a total subsidy cost of a bit over $100 million. Yingluck bought the entire rice crop for over $20 billion dollars, with a loss of $15 billion. This is a very small program that will have no affect on the financial health of the nation.

To summarize:

Rice scheme - big and dumb

Rubber scheme - small and dumb

[rubl]

One thing is clear that the days of small rubber holders who form the majority of suppliers are numbered. The cost of producing rubber in Thailand has been on the rise over the last few years. Labour, chemical, transportation, land and borrowing costs are quite daunting for small farmers. Some big rubber producing and processing companies like Thai Hua Rubber has already strategized well and moved over to Laos and Cambodia. Their business model is to have the plantations outside Thailand and concentrate on trading and manufacturing plus a healthy dose of R&D. The government should realize this and formulate strategies along this model and stop encouraging the farmers by subsidies which only harden their mentality to refuse change.

I agree. An intermediate step could be to let small farmers to form cooperations to share/shoulder costs and be able to put a more united front towards the rubber processing industry they sell their raw rubber to.

What stops these cooperatives (I think this is what you mean) from becoming gouging collusion-oriented groups?

Just wondering......

You're Welcome!!

The real grassroots saw forming cooperatives as way to become more self-reliant, independent of the old power clans.

Of course, cooperatives operate under applicable laws. If existing cooperations collute than either there the laws are in need of modernisation, there are no laws on such instances, or laws are not enforced. Any of the three means work to do.

[oneday]

I guess they must have sold some submarines.

[sawadee1947]

So PM breaks his word (no subsidies to any farmer) Well, time to rehab Yingluck

Are you referring to Ms. Yingluck possibly having broken her word before or are do you have the misconception of equating the Prayuth subsidy with Ms. Yingluck's 'self-financing' RPPS which lost 500++ billion?

equating the Prayuth subsidy with Ms. Yingluck's

you got it

[MiKT]

They smoke rubber sheets?

Does that improve the taste?

No, but it helps the goverment to hide behind the mirrors.

[rubl]

So PM breaks his word (no subsidies to any farmer) Well, time to rehab Yingluck

Are you referring to Ms. Yingluck possibly having broken her word before or are do you have the misconception of equating the Prayuth subsidy with Ms. Yingluck's 'self-financing' RPPS which lost 500++ billion?

equating the Prayuth subsidy with Ms. Yingluck's

you got it

Well, Ms. Yingluck's RPPS wasn't a subsidy with reservations in the National Budget, with expected losses as all subsidies show. No, Ms. Yingluck's RPPS was a wonderful 'self-financing' scam which only needed a revolving fund to make initial payments and restore from sales. That worked so wonderful to the total of 500++ billion Baht loss.

So, wrong equation, sorry.

[sawadee1947]

So PM breaks his word (no subsidies to any farmer) Well, time to rehab Yingluck

Are you referring to Ms. Yingluck possibly having broken her word before or are do you have the misconception of equating the Prayuth subsidy with Ms. Yingluck's 'self-financing' RPPS which lost 500++ billion?

I have the conception of equating the Prayuth subsidy with Ms. Yingluck's 'self-financing' RPPS which lost 500++ billion. (I can't see any conviction still now. Or do you have insider information? If so pls tell me)

And how much loss will be created by the new subsidies???? Open end.

[rubl]

So PM breaks his word (no subsidies to any farmer) Well, time to rehab Yingluck

Are you referring to Ms. Yingluck possibly having broken her word before or are do you have the misconception of equating the Prayuth subsidy with Ms. Yingluck's 'self-financing' RPPS which lost 500++ billion?

I have the conception of equating the Prayuth subsidy with Ms. Yingluck's 'self-financing' RPPS which lost 500++ billion. (I can't see any conviction still now. Or do you have insider information? If so pls tell me)

And how much loss will be created by the new subsidies???? Open end.

Of course you may equate the Prayut rubber subsidy with Ms. Yingluck's 'self-financing' RPPS. No problem, it doesn't have to be logical.

Any way, Ms. Yingluck is getting the chance to explain her scam in court and in the mean time we have a rubber subsidy with reservations in the National Budget. As all know subsidies cost money. Worst case with all rubber going up in smoke the equivalent of 100,000 tonnes of rubber sheets. That's 100,000 times 1,000 times 45 = 4.5 Billion Baht max.

All can truly see that Ms. Yingluck's scheme was just a minor problem, but the Prayut subsidy will ruin the country. At least that seem the picture some try to sell us.

PS I changed your post from "bold" to "normal". Text unchanged of course

[GinBoy2]

The problem is as always, the zealots try to conflate stupidity with criminality.

I'd venture to say that both schemes pass the stupidity threshold, criminality, well thats another question. In Yingluck's case, I going with huge stupidity on her part with little criminality, and huge criminality on the implantation side.

With the current scheme, stupidity up the ying yang, the criminality on its implementation, well thats yet to be written!

[sawadee1947]

So PM breaks his word (no subsidies to any farmer) Well, time to rehab Yingluck

Are you referring to Ms. Yingluck possibly having broken her word before or are do you have the misconception of equating the Prayuth subsidy with Ms. Yingluck's 'self-financing' RPPS which lost 500++ billion?

I have the conception of equating the Prayuth subsidy with Ms. Yingluck's 'self-financing' RPPS which lost 500++ billion. (I can't see any conviction still now. Or do you have insider information? If so pls tell me)

And how much loss will be created by the new subsidies???? Open end.

Of course you may equate the Prayut rubber subsidy with Ms. Yingluck's 'self-financing' RPPS. No problem, it doesn't have to be logical.

Any way, Ms. Yingluck is getting the chance to explain her scam in court and in the mean time we have a rubber subsidy with reservations in the National Budget. As all know subsidies cost money. Worst case with all rubber going up in smoke the equivalent of 100,000 tonnes of rubber sheets. That's 100,000 times 1,000 times 45 = 4.5 Billion Baht max.

All can truly see that Ms. Yingluck's scheme was just a minor problem, but the Prayut subsidy will ruin the country. At least that seem the picture some try to sell us.

PS I changed your post from "bold" to "normal". Text unchanged of course

I think we lost the direction: The govt. bought rubber to a higher than the market price. That's fact. Fact is alo that Prayuth promised NOT to subsidy any farmers. And it's a fact that he breaks his word.

How much loss he produces we'll see in future.

[rubl]

Are you referring to Ms. Yingluck possibly having broken her word before or are do you have the misconception of equating the Prayuth subsidy with Ms. Yingluck's 'self-financing' RPPS which lost 500++ billion?

I have the conception of equating the Prayuth subsidy with Ms. Yingluck's 'self-financing' RPPS which lost 500++ billion. (I can't see any conviction still now. Or do you have insider information? If so pls tell me)

And how much loss will be created by the new subsidies???? Open end.

Of course you may equate the Prayut rubber subsidy with Ms. Yingluck's 'self-financing' RPPS. No problem, it doesn't have to be logical.

Any way, Ms. Yingluck is getting the chance to explain her scam in court and in the mean time we have a rubber subsidy with reservations in the National Budget. As all know subsidies cost money. Worst case with all rubber going up in smoke the equivalent of 100,000 tonnes of rubber sheets. That's 100,000 times 1,000 times 45 = 4.5 Billion Baht max.

All can truly see that Ms. Yingluck's scheme was just a minor problem, but the Prayut subsidy will ruin the country. At least that seem the picture some try to sell us.

PS I changed your post from "bold" to "normal". Text unchanged of course

I think we lost the direction: The govt. bought rubber to a higher than the market price. That's fact. Fact is alo that Prayuth promised NOT to subsidy any farmers. And it's a fact that he breaks his word.

How much loss he produces we'll see in future.

Well, he's PM and he has to adapt to a changing situation. Just like other government adjust their budgets because the oil revenues dropped. No choice. A government must be flexible enough to react to unforseen market events and if possible find the reservations within the National Budget to stay on the aimed at deficit/surplus and only if no other possibility allow the deficit to increase.

Furthermore 'he' doesn't lose anything. His cabinet agreed on a subsidy with a budget of 4.5 billion Baht. Even if only half will be lost, that's only 2.25 bilion Baht. That's acceptable for a subsidy as all here know subsidise cost money in order to help some desperate groups of the population.

[seedy]

one off topic post removed

[MiKT]

Are you referring to Ms. Yingluck possibly having broken her word before or are do you have the misconception of equating the Prayuth subsidy with Ms. Yingluck's 'self-financing' RPPS which lost 500++ billion?

I have the conception of equating the Prayuth subsidy with Ms. Yingluck's 'self-financing' RPPS which lost 500++ billion. (I can't see any conviction still now. Or do you have insider information? If so pls tell me)

And how much loss will be created by the new subsidies???? Open end.

Of course you may equate the Prayut rubber subsidy with Ms. Yingluck's 'self-financing' RPPS. No problem, it doesn't have to be logical.

Any way, Ms. Yingluck is getting the chance to explain her scam in court and in the mean time we have a rubber subsidy with reservations in the National Budget. As all know subsidies cost money. Worst case with all rubber going up in smoke the equivalent of 100,000 tonnes of rubber sheets. That's 100,000 times 1,000 times 45 = 4.5 Billion Baht max.

All can truly see that Ms. Yingluck's scheme was just a minor problem, but the Prayut subsidy will ruin the country. At least that seem the picture some try to sell us.

PS I changed your post from "bold" to "normal". Text unchanged of course

I think we lost the direction: The govt. bought rubber to a higher than the market price. That's fact. Fact is alo that Prayuth promised NOT to subsidy any farmers. And it's a fact that he breaks his word.

How much loss he produces we'll see in future.

Well, he's PM and he has to adapt to a changing situation. Just like other government adjust their budgets because the oil revenues dropped. No choice. A government must be flexible enough to react to unforseen market events and if possible find the reservations within the National Budget to stay on the aimed at deficit/surplus and only if no other possibility allow the deficit to increase.

Furthermore 'he' doesn't lose anything. His cabinet agreed on a subsidy with a budget of 4.5 billion Baht. Even if only half will be lost, that's only 2.25 bilion Baht. That's acceptable for a subsidy as all here know subsidise cost money in order to help some desperate groups of the population.

Yep, he's certainly desperate to help his "poor" mate Suthep.

Its the principle that counts with (alleged) corruption not the amount. You are flogging a dead horse trying to convice people there is a difference because he is so "honest".

[rubl]

Well, he's PM and he has to adapt to a changing situation. Just like other government adjust their budgets because the oil revenues dropped. No choice. A government must be flexible enough to react to unforseen market events and if possible find the reservations within the National Budget to stay on the aimed at deficit/surplus and only if no other possibility allow the deficit to increase.

Furthermore 'he' doesn't lose anything. His cabinet agreed on a subsidy with a budget of 4.5 billion Baht. Even if only half will be lost, that's only 2.25 bilion Baht. That's acceptable for a subsidy as all here know subsidise cost money in order to help some desperate groups of the population.

Yep, he's certainly desperate to help his "poor" mate Suthep.

Its the principle that counts with (alleged) corruption not the amount. You are flogging a dead horse trying to convice people there is a difference because he is so "honest".

Now you've lost track I fear. Here we discuss the new subsidy which will see up to 100,000 tonnes of rubber sheets bought for a price of 45B/kg.

That has no relation with Ms. Yingluck's case in court as Sawasdee tried to suggest and it would seem you as well.

[MiKT]

Well, he's PM and he has to adapt to a changing situation. Just like other government adjust their budgets because the oil revenues dropped. No choice. A government must be flexible enough to react to unforseen market events and if possible find the reservations within the National Budget to stay on the aimed at deficit/surplus and only if no other possibility allow the deficit to increase.

Furthermore 'he' doesn't lose anything. His cabinet agreed on a subsidy with a budget of 4.5 billion Baht. Even if only half will be lost, that's only 2.25 bilion Baht. That's acceptable for a subsidy as all here know subsidise cost money in order to help some desperate groups of the population.

Yep, he's certainly desperate to help his "poor" mate Suthep.

Its the principle that counts with (alleged) corruption not the amount. You are flogging a dead horse trying to convice people there is a difference because he is so "honest".

Now you've lost track I fear. Here we discuss the new subsidy which will see up to 100,000 tonnes of rubber sheets bought for a price of 45B/kg.

That has no relation with Ms. Yingluck's case in court as Sawasdee tried to suggest and it would seem you as well.

Well now you are putting words in my mouth. I never mentioned the legitimate Prime Minister. I am simply saying small corruption looks exactly the same as big corruption when you are trying to convince people you are the holy grail of whiter than whites.

[rubl]

Well, he's PM and he has to adapt to a changing situation. Just like other government adjust their budgets because the oil revenues dropped. No choice. A government must be flexible enough to react to unforseen market events and if possible find the reservations within the National Budget to stay on the aimed at deficit/surplus and only if no other possibility allow the deficit to increase.

Furthermore 'he' doesn't lose anything. His cabinet agreed on a subsidy with a budget of 4.5 billion Baht. Even if only half will be lost, that's only 2.25 bilion Baht. That's acceptable for a subsidy as all here know subsidise cost money in order to help some desperate groups of the population.

Yep, he's certainly desperate to help his "poor" mate Suthep.

Its the principle that counts with (alleged) corruption not the amount. You are flogging a dead horse trying to convice people there is a difference because he is so "honest".

Now you've lost track I fear. Here we discuss the new subsidy which will see up to 100,000 tonnes of rubber sheets bought for a price of 45B/kg.

That has no relation with Ms. Yingluck's case in court as Sawasdee tried to suggest and it would seem you as well.

Well now you are putting words in my mouth. I never mentioned the legitimate Prime Minister. I am simply saying small corruption looks exactly the same as big corruption when you are trying to convince people you are the holy grail of whiter than whites.

My excuses, my dear chap. I assumed your comment was related to the topic. Of course my fault I didn't realise you're talking about other things. Excuses, three times

[Eric Loh]

Well, he's PM and he has to adapt to a changing situation. Just like other government adjust their budgets because the oil revenues dropped. No choice. A government must be flexible enough to react to unforseen market events and if possible find the reservations within the National Budget to stay on the aimed at deficit/surplus and only if no other possibility allow the deficit to increase.

Furthermore 'he' doesn't lose anything. His cabinet agreed on a subsidy with a budget of 4.5 billion Baht. Even if only half will be lost, that's only 2.25 bilion Baht. That's acceptable for a subsidy as all here know subsidise cost money in order to help some desperate groups of the population.

Yep, he's certainly desperate to help his "poor" mate Suthep.

Its the principle that counts with (alleged) corruption not the amount. You are flogging a dead horse trying to convice people there is a difference because he is so "honest".

Now you've lost track I fear. Here we discuss the new subsidy which will see up to 100,000 tonnes of rubber sheets bought for a price of 45B/kg.

That has no relation with Ms. Yingluck's case in court as Sawasdee tried to suggest and it would seem you as well.

Well now you are putting words in my mouth. I never mentioned the legitimate Prime Minister. I am simply saying small corruption looks exactly the same as big corruption when you are trying to convince people you are the holy grail of whiter than whites.

My excuses, my dear chap. I assumed your comment was related to the topic. Of course my fault I didn't realise you're talking about other things. Excuses, three times

Is that "sorry 3 times". Good on you that you on track with the latest catch phrase.

[coulson]

Isn't this almost the same as the rice scheme? It will be interesting to see how this pans out.

The rice scheme was a careless game of poker with the world market and the farmers. This is a knee jerk reaction to a bad market. Given the cap at 100k tonnes, it will not go very far into anyone's pocket and will buy little popularity which is possibly the biggest intention.

[LannaGuy]

Isn't this almost the same as the rice scheme? It will be interesting to see how this pans out.

The rice scheme was a careless game of poker with the world market and the farmers. This is a knee jerk reaction to a bad market. Given the cap at 100k tonnes, it will not go very far into anyone's pocket and will buy little popularity which is possibly the biggest intention.

it cannot possibly be the intention as the government are against 'popularist' policies including elections

[Assurancetourix]

This not the same as the rice scheme at all ! Big difference, the rice purchase was a benefit for the North and the rubber is from the South, BIG difference.

You are wrong because you don't know Thailand or reading too many false informations on officials newspapers.

There are many rubber producers in Issan, maybe more than in the south of Thailand; we have rubber trees since more than 100 years here;

And about rice...People who make two or three cuts in a year are living in the center of Thailand , close to Bangkok, not in the north .