* PM urges calm amid protest, hunger strike threats by rubber farmers
* Says govt will buy rubber at prices higher than the market
* Prices of the commodity at seven-year low
By Aukkarapon Niyomyat and Patpicha Tanakasempipat
BANGKOK, Jan 11 (Reuters) – Thailand’s prime minister on Monday promised help for farmers in the world’s top rubber producer and exporter, amid threats by the farmers to protest if their demands for a guaranteed selling price demands are not met.
Prices have plummeted to a seven-year low amid a global commodities slump, testing the traditional support from rubber farmers in the south for the conservative royalist establishment championed by the generals who seized power in 2014.
Prime Minister Prayuth Chan-ocha said the government would buy rubber at higher-than-market prices, adding that the state was considering using rubber for infrastructure projects such as building roads.
“It’s not easy, but we’ll try to hurry up the process,” Prayuth told reporters, adding that farmers who want to protest could go ahead, despite a ban on public gatherings.
“If you want to demonstrate, you can demonstrate but don’t cause trouble for the authorities,” he said.
The government has already rolled out several measures to support farmers, but some say the measures are not enough, with one group threatening to go on a hunger strike.
Agriculture Minister Chatchai Sarikalya met with representatives from around 10 rubber farmer groups on Monday and said the state would buy rubber directly from farmers by next week. This should help raise market prices within one to two months, he said.
Thailand’s benchmark unsmoked rubber sheet (USS3) was quoted at 33.57 baht ($0.9250) per kg on Monday, the lowest since dropping to 32.7 baht ($0.90) on Dec. 17 2008, according to data from the Rubber Authority of Thailand.
In November, the government approved measures worth $365 million to help rubber farmers, paying a direct subsidy of 1,500 baht ($41.36) per rai (0.17 hectares) for up to 15 rai per household.
Last week, the government asked rubber traders to buy rubber at a rate of 33 to 34 baht per kg and not drive down prices to export at a profit, threatening to cut export quotas for industry players who failed to cooperate.
But farmers say those efforts are not enough.
Saksarit Sriprasart, leader of a group of rubber farmers in Thailand’s south, the main rubber-growing region, said the group will stage a hunger strike this week.
“If the government responds well, we will end the strike,” said Saksarit. “If not, we will keep going.” ($1 = 36.2900 baht) (Editing by Amy Sawitta Lefevre and Katharine Houreld)
