Thai govt meets rubber farmers amid talk of impending protests

BANGKOK: Thailand’s agriculture ministry on Monday (Sep 15) held talks with rubber farmers who have threatened to launch protests over the falling prices of their commodity. The farmers had demanded that the government take measures to stop a slump in rubber prices.

Thailand is the world’s largest rubber supplier but prices of the commodity are sitting at a seven-year low, because the government is sitting on a massive stockpile of 200,000 tons of rubber that was bought up by the previous administration.

The current government has repeatedly announced plans to sell off this huge stockpile. But rubber farmers claim that this is fuelling speculation that the market will be flooded with the commodity. Therefore, they blame the government for causing prices to drop to below manufacturing costs.

So far, authorities seemed keen to listen to farmers’ grievances. But there is growing speculation that farmers may begin protests in southern Thailand this week.

Rubber farmers were a key supporter of protests against the previous administration of former prime minister Yingluck Shinawatra. Many of them believe they are owed compensation by the current administration for their political support.

However, the meeting on Monday has not drawn up any clear solutions for the farmers. Authorities said they were looking at using rubber stockpiles for government projects to prevent prices from falling further.

Thailand Minister of Agriculture Pittipong Phungbun Na Ayuthaya said: “The government must make use of the rubber stock for government projects. The government will not manufacture the rubber. We will take the finished product and next year’s crop and use it for resurfacing roads and making flood barriers. It’s that simple.”

Authorities also want to encourage farmers to focus on producing finished products instead of raw rubber in order to remain competitive on the international market.