Thailand : Panel agrees to double rubber subsidy

The national rubber policy committee yesterday agreed to double its planned subsidy to rubber farmers to 2,520 baht per rai.

Chaired by Deputy Prime Minister and Finance Minister Kittiratt Na-Ranong, the panel agreed to raise the per-rai subsidy from 1,260 baht to 2,520 baht.

The committee, however, did not approve guaranteeing rubber prices at 90 baht per kilogramme of raw sheet government representatives agreed with farmers’ representatives in Nakhon Si Thannarat on Friday.

However, Mr Kittiratt said that the subsidy increase to 90 baht per kilogramme was tantamount to price intervention.

The committee will seek cabinet approval for its decision today.

Under the plan, about 21.2 billion baht will be spent subsidising rubber growers to help them cope with high production costs. The plan will be implemented over a seven-month period beginning this month.

Eligible farmers must have land ownership papers and would be subsidised for a maximum of 25 rai each.

The total amount of rubber plantation area to be subsidised is estimated to be 8.97 million rai.

Following the committee’s resolution, Manoon Upala, who serves as the coordinator of the farmer protests in Surat Thani, said the coordinators will meet today to discuss their protest plans for Saturday.

He said farmers are expected to close roads and lay siege to the provincial halls in their provinces to protest the committee’s decision.

Mr Manoon yesterday described the decision to double the per-rai subsidy, instead of guaranteeing 90 baht/kg, as an act of betrayal.

“We will meet on Tuesday [today] to discuss what we have planned for Saturday.

It is almost certain that the government will not support a price guarantee plan and choose the subsidy option instead,” he said.

Amnuay Yutitham, the coordinator of the rubber farmers’ network in 16 southern provinces, said the groups would discuss the committee’s decision in the next two days and decide on a course of action.

The group had earlier announced it would carry out a mass demonstration on Saturday. National police chief Adul Saengsingkaew, meanwhile, insisted it was impossible to exempt protest leaders from criminal charges in connection with their road blockades, as demanded by the demonstrators.