The first quarter has gone by with several year low rubber price, beyond expectation of rubber growers. Earlier, they expected to sell rubber at 100 Baht per kilogram - the target price of government. They were thus disappointed again this year. With the slowing economy and the unfinished political impasse, rubber growers are encountering livelihood hardship. The RSS3 price at which rubber growers sell now stands at 58-60 Baht per kilogram, contrasting with higher cost of living.
In response to the falling rubber price, rubber growers sold their plantations to businessmen as their income is inconsistent with expenses. Some rubber growers resorted to cultivation of oil palm amid the slowing rubber market due to high output and stockpiles. This price situation will ease significantly if gaining momentum in the second half of the year, and especially if the political impasse in Thailand is resolved.
