Fortnightly rubber situation in Thailand – November 2013

1-15 October 2013

The rubber situation is crowded. The government attempted to shore up rubber price but failed. After all, the price started declining. RSS3 stood at 70-73 baht/kg and was likely to decline further as China, the largest consumer celebrated National Day earlt this October. This may dampen the market.

Recently, the news about Rubber City was heard again after quite a long time. The former prime minister Thanksin Shinawatra attempted to establish Rubber City at Southern Industrial Estate (Songkhla) years ago. Subsequently, Niwatthamrong Boonsongpaisarn, Deputy Prime Minister cum Minister of Commerce met with Mustapa bin Mohamed, Malaysian international trade and industry minister. Both the countries agreed to corporate on trade and investment. The Rubber City will be set up at Thai-Malaysian border. Malaysia set up Rubber City at the appropriate area called “Kotabaru”, while Thailand plans to set up the rubber city in Banprakob, Songkhla which is right opposite to Malaysian Rubber City.

16-31 October 2013

The Rubber City was earlier planned to be set up in Banprakob, Songkhla which is opposite to the Rubber City of Malaysia. However, on 18 October 2013, Minister of Industry, Mr. Prasert Boonchaisook visited Southern Industrial Estate (Songkhla) situated at 9/6, Mu 4, Chaloong, Hatyai, Songkhla. The construction started in 1994 and finished in 1998. Mr. Prasert decided to set up Rubber City there instead of Banprakob, Songkhla.

Southern Thai and oil palm growers group rallied and blocked Petchakasem Road in Bangsapannoi, Prachuabkirikhan to urge for government intervention in rubber price at 100 baht/kg and oil palm price at 6 baht/kg. However, the request was rejected. The government insisted on production cost subsidy at 2520 baht/rai for the period of 6 months but opened a room for re-negotiation within 30 October 2013.