PM orders rubber price probe

PM orders rubber price probe

Prime Minister Prayut Chan-o-cha said he has ordered the Agriculture Ministry to study the cause of low rubber prices and will discuss the matter further in a cabinet meeting today.

Regarding suggestions the government should to hold talks with Malaysia and Indonesia -- the world's biggest rubber producers -- the PM said the government had already done that and continues to do so through meetings under the International Tripartite Rubber Council (ITRC).

The PM said both Malaysia and Indonesia have mutually agreed to increase the use of domestic rubber and will use any means to push the price of rubber to a suitable level.

Gen Prayut said it needs time to solve the problem.

"We will discuss the rubber price situation and solutions to the problem both in the cabinet meeting and in meetings with rubber farmers nationwide," he said.

"I believe that if all parties listen to each other and try to understand the problems, we will be able to find conclusions and solutions to the problem both in short and long term."

During his mobile cabinet trip in the southern provinces last week, Gen Prayut met many who pleaded with the government to help solve the problems of low rubber prices.

Government spokesman Sansern Kaewkamnerd last week said the government wants to raise the use of natural rubber in Thailand by 50% from 600,000-800,000 tonnes per year.

He said the prime minister has ordered government agencies to find ways this year to use an additional 100,000 tonnes of natural rubber.

The government is also encouraging farmers to reduce rubber plantation areas to help decrease supply and eventually increase the price as it was reported there are up to 8.5 million rai of rubber farms that might be unlawful. The administration also plans to encourage farmers to switch to other lucrative commodities such as palm oil, demand for which remains strong in both the food and biofuel industries.

Meanwhile, a network of growers has proposed the government directs local administrative organisations to use their accumulated funds in road construction projects using rubber as a component.

Thossapol Kwanrod, the head of a rubber and palm oil growers' network, proposed using rubber mixed with asphalt in road construction.

Do you like the content of this article?
COMMENT (2)