Collapsed rubber price: Our hands are tied, says government
When the price of oil falls, buyers switch to synthetic rubber, which is much cheaper than natural rubber. It is also a great alternative, because it has similar properties.
This is the government's defense against rubber farmers who want the government to ease their financial concerns. They demand 80 baht per kilo instead of the current price of 40 baht, but the government wants to go to 60 baht at most.
'Our hands are tied. We would like to, but the market makes that impossible. If we raise the price, even more buyers will switch to synthetic rubber," said Secretary of State Amnuay Patise (Agriculture) yesterday, after speaking with farmers' representatives the day before.
Amnuay does not think the situation will escalate. The Alliance for the Revival of Rubber Farmers has informed him that it will not organize a demonstration. At most, farmers will organize "some movement" by getting together and handing the government a petition.
No roadblocks, but mass protest
Thotsaphon Kwanrot, chairman of the network of rubber and palm oil farmers in the sixteen southern provinces, says roads will not be blocked, as happened earlier this year.
The editorial commentary paints a different picture. Sunthorn Rakrong, described as the leader of rubber farmers in the South, is threatening a mass protest after New Year's Eve in Bangkok. He is not impressed by the 1.000 baht subsidy per rai that the government has promised. "That's the wrong approach to deal with the fall in the rubber price."
The newspaper acknowledges that rubber farmers are suffering now that rubber is worth half its price three years ago. In 2011, a rubber tapper earned 1.060 baht a day, now 380 baht. 'Many farmers then bought a pickup truck on a hire-purchase basis because they thought that the price would remain above 120 baht per kilo for many years to come. Many people have replaced their fruit trees with rubber plantations. When the harsh reality set in, their dreams fell to pieces.'
The newspaper believes that the government is investing in the rubber industry and research and development should stimulate. On the other hand, the rubber farmers have to adapt to the current situation. They need to lower their production costs and be more realistic with their demands amid fluctuating rubber prices, which the government can do little about.
(Source: Bangkok Post, Dec. 11, 2014)
Doesn't this just fall under business risk? Just like with the potatoes in the Netherlands; one year the prices sky high and many a farmer is planting more petats. The result is that prices are very low the following year and the potatoes are plowed over. Then the government doesn't subsidize, does it? Why here, because the Abhesit government has advised farmers to plant rubber trees?
The price of rice has been inflated and that rice is rotting in the sheds. The farmers also want this system for their rubber. Don't blame them?
Is this typically Thai? Cut down the fruit trees when rubber yields more? I see that in the shopping street here. Noy establishes a shop for underwear, dozens of customers arrive, and boom, Ooi, Ooy and Boy also come with underwear and convert their shop into yarn and tape or a hairdresser's shop. No, underwear, that's suddenly cheese for everyone. And if it goes wrong, socks come back in.
Diversity. The old 'mixed business' I learned about in school. Then you bet on all possibilities at the same time. Just tell them…..
I don't think a subsidy is the answer, rubber cannot rot like rice (it can dry out?), but a new mortgage system with a disrupted market is of no use to anyone in the long term, is it?
I remember that 2 years ago on a website someone calculated mountains of gold, rubber yielded so much, several thousand baht per day. Many tens of thousands of baht per month. And the price only increased. The first thing I thought: even if those sales figures are correct, those prices can stabilize, fall or collapse completely if it turns out to be a bubble. I wouldn't put my eggs in 1 basket but grow multiple products. Especially if someone promises mountains of gold.
Surely the government can do little, perhaps stimulate the sales market, but subsidy per unit? That tax money could be spent on better things.
The 1000 baht per rai is only for rubber farmers who have chanot on their land. the other farmers without chanot get nothing, i think this is discrimination. they pay no more than 15 rai per farmer.
This falls under entrepreneurial risk.
The same has been happening in the Netherlands for decades.
If you can't knit it around, you have to sell or rent out your land and work for a boss.
It's just a matter of supply and demand.
You could also grow another product.
Gruddy.
If the rubber price is high, will the government get all that subsidy back?
Fruit prices have tripled in recent years, so maybe an idea: plant fruit trees?