Rubber planters have vowed to converge on Bangkok on Wednesday (May 7) to protest against the government’s plan to sell off its stockpile of 220,000 tonnes on the cheap.
The leader of a rubber group has raised doubts about the transparency of the move.
President of the Rubber Council of Thailand, Uthai Sonlaksap, said yesterday (May 5) caretaker Deputy Prime Minister and Agriculture and Cooperatives Minister, Yukol Limlaemthong, had urged the Rubber Estate Organisation (REO) board to set up a panel to handle its rubber stock and reduce the financial burden on the government.
The plan concerns the release of 220,000 tonnes of rubber stock held under the government’s price intervention programme last year, he said.
“The Federation of Thai Rubber Farmers will petition the National Anti-Corruption Commission (NACC) and the Office of the Auditor-General of Thailand (OAG) to quickly probe the release, as it does not appear transparent, ” Mr Uthai said.
Mr Uthai said the release of rubber stock at low prices could pull down market prices.
This contrasts with the policy of former Agriculture and Cooperatives Minister Nattawut Saikuar, who vowed to maintain the price at 120 baht per kilogramme under the price intervention programme.
The government would immediately face huge losses if it sells the rubber at 40-50 baht/kg, Mr Uthai said.
If the government sells all the rubber stock, it will earn less than 10 billion baht. This is significantly lower than the 40-billion-baht cost incurred in last year’s intervention programme, Mr Uthai said.
He said the cost of last year’s programme includes 25 billion baht paid to farmers for rubber at 120 baht/kg and 15 billion baht in expenses for rubber smoking, making it into blocks, storage and insurance.
As rubber prices are currently falling, it is an unusual time for the government to discharge its stockpile, he said.
The government may have decided to sell because it knows it is about to lose value.
Mr Uthai also raised doubts about the swift set-up of the panel on the stock release, as the REO board had convened in Surat Thani on Wednesday (May 7) and agreed not to discharge the stock.
Boonsong Nubthong, president of Federation of Thai Rubber Farmers, said members of several rubber farmers’ organisations will travel to Bangkok on Wednesday (May 7) to petition the government over the planned release. They are concerned about their livelihoods.
The government should listen to the voices of rubber farmers because the discharge of its stocks could adversely affect growers who started tapping rubber trees last month, he said.
“It’s irrational to sell the rubber quickly because it will lower the price,” Mr Boonsong said.
“The move is inevitably seen to have some political agenda.”
– Reuters
