Monthly Rubber Situation in Thailand - October 2014

Currently, cost of rubber production faced by rubber growers climbs to 65 baht/kg, while rubber price stays at 45 baht/kg. Rubber price has continued its downfall for almost 2 years. It is considered unprecedentedly very low as compared to the historic highest price at 180 baht/kg. Rubber growers are facing livelihood hardship, with average daily income at 2,000 baht now decreasing to some hundred baht, resulting in income-expense imbalance. Small holders, accounting for 80% of total rubber growers resorted to other occupations such as factory workers.

In response to the above said problems, the Thai Rubber Council proposed 6 following measures to solve falling rubber price: 1) establishment of rubber statistics compilation center; 2) transparent management of rubber stock of 210,000 tons in a way that rubber price is not affected; 3) provision of 10 billion baht working capital to agricultural organizations for processing, preservation and selling when the price is remunerative; 4) provision of 15 billion baht capital to entrepreneurs for expansion of production capacity and cost reduction, which brings about supply control; 5) levy of cess at the single rate of 1.40 baht/kg; 6) zoning of rubber plantation.