Farmers pitch rubber barter

>> Farmers have urged the government to help shore up the price of rubber by bartering with foreign countries for military equipment and vehicles.

Instead of forcing rubber farmers to reduce production, the government should follow the example of neighbouring countries which use a barter system to shore up the price of farmed goods, said Uthai Sornlaksap, president of the Rubber Network Council and Rubber Farmers Institute of Thailand (RNRF).

“The government can help Thai farmers by exchanging domestic rubber commodities for military weapons such as submarines, fighter aircraft and armoured vehicles from foreign countries,” said Mr Uthai, adding a similar approach could be applied to other government-to-government projects, such as high-speed trains, to cut their costs.

Several neighbouring countries already use a barter system to help sell local farm products, he said.

For example, earlier this month, the Indonesian government negotiated with Russia on the purchase of 11 military fighters valued at US$1.41 billion. Fifty percent of the price of the aircraft was paid in Indonesian rubber.

Vietnam in 2009 purchased six Russian submarines with half of the budget paid in consumer goods. Besides, a bilateral trade contract also stipulates Russia is required to provide training for 100 Vietnamese crews for the use and maintenance of the submarines.

“Why does our country, which has agricultural products in demand from other countries, not have such a [barter] policy?” Mr Uthai asked.

The RNRF president said he had already discussed a rubber barter proposal with Yongyut Sarasombat, president of the Thai-Omani Friendship Association, and a Thai-Iraqi cultural club.

Pol Maj Yongyut was quoted by Mr Uthai saying that he would discuss the matter with agriculture minister Grisada Boonrach and other countries that might be interested.

He said the government is not being practical in asking farmers to refrain from growing 2 million rai of rubber between May and July. Only those registered with the authority would get compensation, he said.