Thai rubber farmers wheeze as prices slump

As rubber prices slump, hard-up farmers in Thailand – the world’s top producer of the commodity – are appealing for a bailout, testing the junta’s resolve to end populist policies and an entrenched subsidy culture. The global price for a one kilogram sheet of natural rubber has retreated to 43 Thai baht (US$1.3) after a three-year slide. That decline, from highs of up to 120 baht in 2011, has chiselled away the income of Thailand’s estimated six million rubber farmers. The Thai Rubber Farmers’ Association says the kingdom produces around four million tonnes per year with an average annual export value of around $8 billion – although that sum has been sheared by falling global prices.

We have been calling for help for a long time but there has been no clear stance or direction (from the government) yet.

Sawad Ladpala, president of the Thai Rubber Farmers’ Association

Farmers’ groups are calling on the military government to guarantee the price at 80 baht a kilo. The ruling junta initially vowed to extinguish Thailand’s subsidy culture, but even they have swiftly opened the tap amid complaints from rubber farmers. Prayut Chan-O-Cha, the tough-talking army chief turned prime minister, has released $1 billion for rubber farmers to help ease the pain of falling prices. He says he wants to spur domestic demand for rubber and value-added products, while also urging farmers to diversify or change their crop to palm oil. But as yet he has failed to respond to the call for an 80 baht price guarantee.

If the government does not adjust the price, we will go to meet the Prime Minister.

Jade Charongan

Business