“If the output is more than this [100,000 tonnes], we’ll keep buying it. But this is an initial ground rule. Even though we haven’t started buying yet, market prices have already risen,” Gen prawit said.
The deputy prime minister stressed the measures were just an immediate relief. In the longer term, the agriculture ministry will need to rethink and plan the plantation areas.”
Rubber farmers have been hard hit by the global price slump in line with oil. Rubber prices have plummeted to 34 baht a kg while farmers claim their cost is 60 baht.
The rubber trade law, passed by junta-appointed legislators in 2014, allows the Rubber Fund to be used in the event of “market crises”. The old law required the cess duty be used exclusively to support felling and replanting rubber trees.
Lukewarm response
The announcement drew lukewarm responses from some farmers’ groups.
The price-setting was a cause for concern, Manas Boonpat, chairman of the Association of Tappers and Small Rubber Farmers, said in Phatthalung province.
“The price shouldn’t have been announced. The government can lead by buying 1-2 baht a kg higher when buyers are reluctant,” he said.
Besides, he thought the PWO was not as experienced as the Rubber Authority of Thailand.
“The government should let the Rubber Authority of Thailand buy rubber and have it set up sub-committees dominated by local farmers in each area since they are the ones who know whom to buy rubber from.
“we’re concerned who the lucky sellers to the government wo