New rubber price subsidy is ‘unfair’, says RNRF

The Rubber Network Council and Rubber Farmers Institute of Thailand (RNRF) is opposing the cabinet’s resolution to implement a new rubber price subsidy programme, saying the decision is unfair to over 8 million rubber farm workers who won’t benefit from the subsidy.

Uthai Sonlaksap, president of the RNRF, said only about 1.4 million people in the industry will be entitled to financial assistance under the subsidy programme.

The 8 million people running or working on plantations without proper land title deeds or tappers won’t be included in the programme, he said.

The cabinet last Tuesday approved an 18-billion-baht subsidy for rubber growers and tappers to help ease the impact of low rubber prices.

Agriculture Minister Grisada Boonrach said of the 1.4 million people who will benefit from the subsidy programme, about 1 million are rubber plantation owners and the rest are rubber-tapping workers.

Only the people who are already registered with the Rubber Authority of Thailand (Rat) and currently work plantations with proper title deeds will receive the promised money from Dec 18, said the minister.

The cabinet agreed to pay them 1,800 baht each per rai of rubber plantation, up to a maximum of 15 rai per person.

The Bank for Agriculture and Agricultural Cooperatives (BAAC) will handle the payment using its own money.

Five major rubber exporters have also agreed to cooperate with the government to help rubber growers by guaranteeing the prices of both rubber milk and cup lump at 37 baht per kilogramme.

The smoked rubber sheet price will be guaranteed at 40 baht per kilogramme.

Thailand currently produces 4.6 million tonnes of rubber each year, about 4 million tonnes of which is exported.

Prime Minister Prayut Chan-o-cha last week insisted the subsidy programme is intended only as a temporary measure and the government would rather encourage growers to adjust to the changing economic climate.

Mr Uthai, however, described the cabinet’s resolution as a waste of taxpayers’ money, saying a similar subsidy programme had previously been adopted and didn’t actually improve the rubber prices.

As all rubber farmers are required to equally shoulder the rubber import fee of two baht per kilogramme, the disparity in who benefits from the subsidy may lead to conflicts among them, he said.

He plans to voice the RNRF’s objection to the cabinet’s resolution on the rubber price subsidy package at tomorrow’s meeting of the government’s committee on natural rubber policy that will be chaired by Mr Grisada.

He also plans to propose a government acceleration of rubber soil cement production for road construction, a measure he believes would help shore up rubber prices and benefit all rubber workers.

Sutthiphong Juljaroen, director-general of the Department of Local Administration, said a total of 3,275 construction projects using more than 19,000 tonnes of rubber were implemented in the 2018 fiscal year.

In the 2019 fiscal year, which started last month, an additional 1,118 similar construction projects would be implemented under the plan as the government attempts to find new uses for rubber, he said.