SONGKHLA, 6 May 2014 (NNT) – Rubber tree growers in the South have expressed opposition to the Ministry of Agriculture and Cooperatives’ plan to release 200,000 tons of rubber it is currently holding, fearing the move would cause significant losses to government coffers and push rubber prices lower.
The Agriculture Ministry said it planned to release its current holding of 200,000 tons of rubber into the market in order for it to be able take in the rubber, that would be produced during the new tapping season beginning this month. The ministry reasoned that getting rid of its rubber stock would ease its burden in maintaining product quality.
However, Somphong Ratsuwan, a leader of the rubber tree growers in Songkhla, argued that should the sale commence, the government would have to shoulder a huge loss stemming from the fact that the rubber in stock was purchased at around 100 baht per kilogram whereas the selling price would only be 60 baht per kilogram. He also asserted that releasing the rubber at this time would push down the market price, as a large amount of rubber is set to come on to the market, with the tapping season already commencing this month.
Mr. Somphong said the rubber tappers would instead like the government to seek other ways to utilize the rubber in stock.
Last year the government promised to try to increase domestic use of rubber as a sustainable solution to the falling rubber price. One such use was in road construction, where the government said it would increase the use of rubberized asphalt instead of the standard pavement material.
– thainews.prd.go.th
