Rubber farmers say new aid insufficient

Rubber farmers say new aid insufficient

Retired army general named head of Rubber Authority

A man takes a picture of basket filled with rubber at the central rubber market in Nong Khai Sept 16. Steps announced to help rubber producers do not go far enough, some farmers said on Jan 13. (Reuters photo)
A man takes a picture of basket filled with rubber at the central rubber market in Nong Khai Sept 16. Steps announced to help rubber producers do not go far enough, some farmers said on Jan 13. (Reuters photo)

Steps announced this week by the government to help rubber producers grappling with plunging prices do not go far enough, some farmers said on Wednesday.

Prime Minister Prayut Chan-o-cha today named a retired army general to head the effort to tackle the crisis surrounding falling rubber prices. The appointment of ex-chief of staff Chatchalerm Chalermsuk as president of the Rubber Authority of Thailand came after the cabinet on Tuesday promised to buy some rubber directly from farmers at rates above market levels and announced piecemeal measures including a plan to open up rubber processing factories.

The moves came after protest threats by rubber farmers galvanised a military government that draws much of its support from Bangkok and the South, the country's main rubber-growing region.

Retired army chief of staff Chatchalerm Chalermsuk was named president of the Rubber Authority of Thailand on Wednesday. (Bangkok Post file photo)

Farmers have been calling for solutions to falling demand for rubber, driven by a slowdown in the economy of China, the world's biggest importer of the commodity.

The government said it would buy rubber directly from producers at prices of up to 60 baht a kilogramme before the current tree-tapping season ends. But that disappointed some farmers who had been demanding a set price of 60 baht, roughly double current market levels.

Suthorn Rakrong, a spokesman for 16 rubber groups, said on Wednesday that if prices did not reach 60 baht within 30 days protests would take place, but added that the government still had his support.

"Rubber farmers in the South are rooting for the government. We can see that they are trying," he said.

Gen Prayut had pledged to wean rice and rubber farmers off expensive subsidies used by the government it ousted, but -- under pressure to please politically powerful farmers -- it approved more than 36 billion baht in rural subsidies last year.

"I have worked almost to death, I have done more than other governments," Gen Prayut told reporters in response to questions about demands made by rubber farmers.

Rubber farmers were among the first groups to protest in 2013 against the civilian government led by former premier Yingluck Shinawatra.

Saksarit Sriprasart, a farmer leader, said on Wednesday his group would get rid of "inefficient government officials who cannot solve rubber price problems".

"Our faith in the government has never been so shaken."

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