About 50 angry rubber farmers risked violating martial law Tuesday to decry draft legislation aimed at reversing plummeting market prices while also demanding new subsides.
Rubber prices hit a seven-week low last week after Thailand, Indonesia and Malaysia, which produce about 70% of world’s natural rubber, failed to decide when and how much they will cut exports next year to push up demand. In a petition submitted at the temporary public service centre at the Office of the Civil Service Commission, growers said they want a subsidy that would allow them to net 80 baht a kilogramme for raw rubber sheets.
A rubber planter in Krabi province fell down the tree in September 2014 in order to switch to palm oil plantation.
The Rubber Planters Rescue Alliance, which demonstrated in defiance of martial law’s ban on political gatherings, also demanded the National Legislative Assembly scrap a proposed law aimed at supporting the rubber industry. Coalition coordinator Sunthorn Rakwong claimed the bill won’t boost prices because it was drafted mainly by academics, civil servants and politicians.
“We want the national assembly to scrap the draft because small-time rubber farmers will have very little say in it and it is not a genuine support measure,” said Mr Sunthorn, speaking for 14 southern farmer groups, told Reuters. “If the national assembly does not scrap it, then rubber farmers all over the country will rise up and protest.”
The draft aims to set up a Rubber Authority of Thailand, including farmers and representatives from the public and private sector, to oversee policy and prices. But Mr Suthorn said the plan would not help all farmers, especially who grow rubber trees but don’t own land, and rubber tappers.
The coalition urged the government to buy raw rubber sheets at 80 baht a kilogramme, much higher than Tuesday’s market price of 44.90 baht published by the Office of the Rubber Replanting Aid Fund. He said if the government cannot pay cash, it should issue bonds for farmers to cash in later at the Bank for Agriculture and Agricultural Cooperatives.
The southern alliance gave the government until Dec 25 to withdraw the rubber bill and threatened to take action against it if it is not withdrawn.
“The global price is no more than 50 baht a kilo, but our cost is around 65 baht,” Mr Suthorn told Reuters. “We are losing money and will fight until the end.”
“We will take this matter into consideration and take it up with the prime minister,” Amnuay Patisae, the newly appointed deputy agriculture and cooperatives minister, told Reuters.
He added, however, that the government would bring farming representatives into the drafting process for the new law to ensure successful reform.
Mr Amnuay said there are a total of 16 measures aimed at assisting rubber planters, including one to pay growers 1,000 baht per rai. Another would extend loans to rubber cooperatives via the BAAC to buy raw rubber from planters.
The biggest factors driving down prices over the past year has been soft demand and oversupply.
The Rubber Economist, a London-based industry adviser, estimates the global rubber surplus this year stands at 292,000 tonnes. But moves by Thailand, Malaysia, Indonesia and Vietnam to cut exports could reduce the glut to 43,000 tonnes in 2015, the company said.
Mr Amnuay said demand from China already is rebounding, with rubber firms there buying more Thai product.
Thailand also plans to cut rubber forests by as many as 400,000 rai a year, double the current level. The country will produce around four million tonnes of rubber, while domestic demand sits at 500,000-600,000 tonnes a year.
– bangkokpost.com
