THAILAND: Prayut shuns rubber farmers’ bid for help

The government is facing a looming protest from rubber planters in the southern provinces and elsewhere who have been hit by extremely low latex prices, which have already dropped to about Bt25 per kilogram due to the global commodity price slump.

 

Prime Minister Prayut Chan-o-cha said on 5 Jan. 2016 that the government has limited funds to help farmers, as rubber planters in the southern provinces of Nakhon Si Thammarat and Trang seek extraordinary meetings of provincial councils of farmers in a bid to press for more government help.

Niwat Soonsan, chairman of the Trang council's working group on rubber plantations, said the price slump has seriously hurt many planters in provinces nationwide.

Previously, planters in 16 southern provinces threatened to rally due to the price slump. Niwat said his farmers' council needs to find measures to help members and forward the proposals to Bangkok via the governor. He complained that the government has not taken enough action to prevent latex prices from falling, thus hurting the livelihood of rubber planters and their families.

Farmers have also blamed middlemen for causing downward pressure on latex prices as they seek profit margins of Bt10-Bt12 per kilogram. Planters say a fair profit should be Bt4-Bt5 for converting latex into smoked rubber sheets. Prayut said there are limited public funds to help farmers because it is not possible financially for the government to cover every project, including healthcare and the rice and rubber-subsidy programs. The prime minister added that crude oil prices have plunged to record lows worldwide, which has been a key factor underlying the global commodity and rubber price slump.

Wanichsan Ruangsri, a merchant in Trang, said he had to stop selling rubber seedlings during the prolonged slump, as some planters had switched to other crops such as palm and fruit trees.

Source: Daily “The Nation”, Bangkok; 6 Jan 2016
(Syed Rashid Ali, Karachi, Pakistan)