THE FEDERATION of Rubber Planters’ Association of Thailand has submitted a six-point proposal to the government to tackle the problem of slumping latex prices.
Under the proposal, Prime Minister Prayut Chan-o-cha would invoke Article 44 of the provisional constitution to require all local administrations nationwide to use natural rubber for road construction to help reduce domestic supply, which should help firm the price.
The country has an inventory of 300,000 tonnes.
Boonsong Nubthong, president of the federation and head of the Krabi rubber planters’ association, said yesterday that the price of latex has dropped to a historical low of Bt22-Bt25 per kilogram, while scrap rubber fetches only Bt12-Bt15 per kilogram, causing economic hardship for workers and plantation owners nationwide.
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Many workers and plantation owners have piled on debts and are forced to sell their trees to cover expenses. They cannot keep up with instalments for vehicles and motorcycles.
Boonsong said an earlier attempt for the Highway Department to mix natural with synthetic rubber in paving highways was aborted because of a conflict of interest involving asphalt companies.
The government needs to call an urgent meeting of key agencies, including the Agriculture Ministry, to take some action while speeding up the certification of rubber sheet processing.
The government should allocate a subsidy of Bt1,500 per rai to compensate for the plunge in latex and rubber sheet prices.
Dejrat Simsiri, the governor of Trang, another major rubber-producing province, said southern rubber planters are calling for meetings to solve the problem with the first gathering of 200 people scheduled for Tuesday.
Trang has more than 90,000 workers and plantation owners registered with local authorities for receiving state benefits, including a subsidy of Bt1,500 per rai.
