Worst rubber price crisis over: PM Prayut

[webfact]

Worst rubber price crisis over: PM

 

 

BANGKOK, 11 July 2017 (NNT) – The Prime Minister affirmed that the government's efforts have been taken to address the sustained rubber price crisis and that the worst was over. 

Prime Minister Prayut Chan-o-cha asserted that rubber prices will adjust itself according to market mechanisms and other factors such as interest rates and oil prices. He noted that the government has already implemented aid measures for rubber farmers and associated businesses by providing special loans for the purchase of fresh rubber. 

The aid measures also include extensions on loan repayment periods for agricultural institutes, the creation of a buffer to stabilize rubber pricing, and the establishment of rubber development funds to support entrepreneurs in the industry. 

Farmers are also encouraged to cultivate other crops, especially those that can generate year-round income, as well as to adopt agricultural methods from model "Smart Farmers." 

Gen Prayut said that despite the high demands for rubber in the global market, Thailand mainly exports raw rubber, whose pricing is subject to global price volatility. Therefore, he argued that innovation was required to create value-added rubber products. The government has also been promoting the use of natural rubber domestically, to reduce reliance on exports. 

The premier claimed that the worst of the rubber price crisis has passed, as export figures and crude oil prices have started to recover. Natural rubber exports in the first five months of 2017 were valued at 2.83 billion US dollars, a 63.55 percent increase year on year. The export of processed rubber products, such as tire and rubber gloves, was valued at 4.07 billion US dollars, a 58.98 percent increase year on year. The export of rubber products is expected to continue growing due to the continuous demand in global markets. 

Gen Prayut instructed the Ministry of Agriculture and Cooperatives and the Rubber Authority of Thailand to raise awareness among farmers of the situation to allay concerns, and for the Ministry of Commerce to facilitate business negotiations and promote Thai rubber products in foreign markets, particularly in China, Latin America, Bangladesh, and Iran, as well as the domestic use of rubber.

 

-- nnt 2017-07-11

[Chang_paarp]

Er boss article44 cannot fix international prices.

[worgeordie]

Rubber prices will bounce back,according to the PM.

regards Worgeordie

[williamgeorgeallen]

2 hours ago, Chang_paarp said:

Er boss article44 cannot fix international prices.

seriously what can it fix? lottery prices are back to where they were before.

[williamgeorgeallen]

1 minute ago, worgeordie said:

Rubber prices will bounce back,according to the PM.

regards Worgeordie

maybe if there is strong inflation.

if the price has been falling over time it is a safe bet it will continue to do so. we are going through the same thing in new zealand with wool prices. it is moving farmers away from sheep farming and toward other more profitable enterprises. thais seem to resist change.

[ChrisY1]

Oh Bravo Prayuth......!

Even though he and the government can do little, the headlines will now have his predictions of better prices....soon??

[the guest]

Most industry use artificial rubber now, so i can't see how the price can bounce back?

[Dobredin Ghusputin]

4 hours ago, webfact said:

Farmers are also encouraged to cultivate other crops, especially those that can generate year-round income

 

Switch off the TV and go to bed early.

 

[Becker]

How about a poem comforting the rubber farmers, General? I'm sure a heartfelt poem penned by the junta leader would go a long way in allaying their fears.

I'll even help you get started:

"Rubber price rises and elections will happen soon,

about the same time as the first Thai on the moon....."

 

All yours, General! 

[YetAnother]

2 hours ago, williamgeorgeallen said:

seriously what can it fix? lottery prices are back to where they were before.

agreed; thai version of maintenance is to do nothing

[Lucky mike]

Maybe the graph is upside down ?

[inThailand]

Rubber prices will rebound right after Thai overtakes English as the world language. 

[sandemara]

Weasel words and economic gobbledygook. The basis for any economic policy in a overly-controlled society that can only lay back and think of Thailand until the ordeal is over.

[Srikcir]

9 hours ago, webfact said:

The Prime Minister affirmed that the government's efforts have been taken to address the sustained rubber price crisis and that the worst was over. 

 

9 hours ago, webfact said:

the creation of a buffer to stabilize rubber pricing

In 2015 Prayut's 10 billion baht rubber buffer stock program paid Bt60 per kg. It hasn't been enough to sustain farmers. Their production costs have been Bt65 per kg. Even with additional subsidies and soft loans the rubber farmers' profit margin doesn't provide for a sustainable living. Since the coup the farmers have wanted Bt80-95 per kg that would give them a 30% profit margin.

 

Just yesterday the Network of Rubber Grower Groups of Thailand had voiced its support to the call for Prayut to issue an order under Article 44 to help solve the problem of declining rubber prices for rubber latex that are now Bt38-40 per kg.

 

The worst is not over for Prayut or the farmers.

 

 

 

[Mad mick]

9 hours ago, Chang_paarp said:

Er boss article44 cannot fix international prices.

navy ; fighter jets , army , he's  a fnk ba ba bor + jaunta all in la la land im loving it dont want farangs visas are tight and gone rediculiously beyond comprehenshion ; why dont the thais jack up . They can't kill all 68 million of u . Pol pot tried  They r the same killing u softly. Sorry story .