Thai govt looks for long-term solution to low rubber prices

[webfact]

Govt looks for long-term solution to low rubber prices



BANGKOK, 15 January 2016 (NNT) - Deputy Prime Minister Somkid Jatusripitak said the government’s procurement of rubber at 45 baht per kilogram is only a short-term solution to the price problem.

According to the Deputy Premier, the National Council for Peace and Order (NCPO), the Rubber Authority of Thailand, and the Public Warehouse Organization will also try to maintain the price of rubber.

However, Dr. Somkid indicated that despite current efforts, a long-term solution must quickly be implemented. He mentioned promoting the use of rubber in the industrial sector, increasing the production of processed rubber and setting up more rubber-processing factories.

He added that the government will also consider providing incentives for investment in the rubber industry.


-- NNT 2016-01-15

[khwaibah]

Yingluck knows how.

[NeverSure]

I'm sure the price of rubber will bounce back.

[webfact]

Direct rubber purchase is just short-term solution – Somkid says



BAGKOK: -- Deputy Premier Somkid Jatusripitak made clear yesterday that the purchase of rubber from farmers is only a short-term solution.

He said for the long-term solution, more proposals should be presented on increasing rubber usage, as well as on the processing of raw rubbers and the setting up of more rubber-related factories in the country.

Mr Somkid said the Board of Investments (BOI) would be tasked to come up with new measures to persuade more investments in the provincial rubber industry.

Meanwhile Interior Minister Gen Anupong Paojinda said that the ministry would be allocating a budget from the ministry to purchase rubber but further details are needed to be discussed before this could be carried out.

Primarily, he said the ministry would purchase materials which are made from rubber, such as rubber mats used in playgrounds and materials needed for the construction of pavilions.

He said he would also instructed Local Administration Organisations to use these materials as well.

At the same time, the Ministry of Finance has held talks with the Industry Ministry and public financial institutions on how rubber could be processed to add value.

The ministry has already approved that the Bank for Agriculture and Agricultural Cooperatives (BAAC) and the Government Savings Bank (GSB) to provide a loan of 4.5 billion baht to the Public Warehouse Organisation (PWO) and the Rubber Authority of Thailand for the purchase of 100,000 tonnes of rubber from farmers.

Four state-owned banks were also advised to lend low interest loans to the private companies which have contracts with the government, while supporting other financial institutions to consider lending soft loans to private businesses, so as to pave way for these companies to be able to purchase more rubbers into their stocks.

Source: http://englishnews.thaipbs.or.th/direct-rubber-purchase-is-just-short-term-solution-somkid-says


-- Thai PBS 2016-01-15

[smutcakes]

I thought they had found the solution. All Governmen agencies have suddenly realized over night that they do in fact definaelty need rubber!

And that is definalty NOT populist, vote buying, paying off jobs done debts etc etc

[phoenixdoglover]

There is this thing called the global market. It's where most of the Thai rubber goes to die. In this current kerfuffle over Thai rubber, most of the government geniuses are acting as if the global market has minor significance. I think they know better. But admitting they are not in control of the major factors is "uncomfortable".

That being said, the global market will continue to be the place where rubber prices are determined.

Perhaps the current "government" should think about innovative solutions to this issue.

For both rubber and rice, one solution would be for the Thai government to sell Thailand to China. After all, China is the major trading partner, and the global market could be largely avoided if rubber and rice farms were nationalized under a unified system for farmers, manufacturers and consumers. This would have the added benefit of opportunities for enrichment by the elite, and would solidify the type of government required to effectively execute the much-touted 20-year strategies.

An alternate buyer could be Malaysia. Perhaps a tender should be floated.

[trogers]

And the next item on the list - palm oil!

[Reigntax]

They never had to subsidise the burmese slave traders. They were always able to find a reasonable market price. Mind you alot of stock was destroyed enroute!

[KarenBravo]

Why don't they just tell the farmers the truth for once? That they have no control over prices that are set by the world market according to the laws of supply and demand.

Then, sit the farmers down and explain the laws of supply and demand.

[jwongbkk]

maybe the govt should produce more condoms and distribute them to the villages so that those poor villagers can get some protection instead of having children all the time?

[diehard60]

Putting more rubber into the market does not make the price go up. It is just the other way around. Wrong thinking again on their part.

[diehard60]

Why don't they just tell the farmers the truth for once? That they have no control over prices that are set by the world market according to the laws of supply and demand.

Then, sit the farmers down and explain the laws of supply and demand.

First they have to understand those laws themselves. And that is a big task alone.

[Redline]

Easy~control the world market Thailand controls the world right?

Edited January 15, 2016 by Redline

[wabothai]

After the rice debacle they now do a similar thing. To me mind boggling, unless of course my brains fail me.

[bkk6060]

Nobody I have met in Thailand uses a condom.

Thus low demand and lower prices.

[Srikcir]

Beware the ides of March (2016).

We will quickly know more of China's economic outlook for 2016, a major importer of Thai rubber. If its industries continue to slow, less rubber will be imported and drive the value downward further. Also in the pricing mix is Indonesia, Malaysia, India and Vietnam who will be concerned with their own economic agendas. Thailand may have little control over the near future price of rubber.

[trainman34014]

Easiest solution is to cut down around 50% of the rubber trees and grow something else on the land that will sell at better prices. Just five years ago the Thai Government were promoting the idea of planting rubber plantations and telling people they would make good money from it. Another brilliant idea dies a Thai death !

[rethaier]

Grow something profitable and sustainable like Hemp.

[timber]

First thing is keep the problem simple. What are we doing? What can we do? Heard an interesting project on making cushion and mattresses out of rubber. Do we have the right people assessing the problem. Give some big university in the states the problem of rubber products.

[Ulic]

If the Thai government could control the price of oil then they could control the price of rubber.

Of course it would be much much easier to control the price or rice, and they tried that and

that did not work out so well.

[Dutch Dennis]

the biggest problem is when the government keeps promising solutions instead of properly explaining the farmers. once promised the farmers gets their hopes up only to get disappointed once more.

but as noted before, this is the thai government at fault as they promoted the growth of rubber giving away free rubber and fertiliser a decade or so ago. and they didn't have any way of managing who makes what.

So here we are. they wanted rubber. they got it, and the people who followed their advise are suffering. so it would only be fair that some sort of solution will be provided. as cutting down the trees is a good solution. but would you cut down half of a 7 year investment?

[KarenBravo]

Remember when the government promoted Eucalyptus?

An environmental disaster.

[phoenixdoglover]

The last idea, not so long ago, was to cut down rubber trees and substitute Palm oil.

Seriously, for a developing country, the primary strategies should be away from Reliance on rice and rubber and Palm oil.

Education. Education. Education.

[KarenBravo]

Education. Education. Education.

That's the last thing the ruling classes want for their fellow countrymen. It would spell the beginning of the end.