The
Thai Rubber Association organized the annual dinner Centara Grand Hotel,
CentralWorld, Bangkok on Friday, 11 May 2018 as well as a golf tournament at
Bangkok Golf Club, Pathum Thani. In addition, TRA also hosted the 21st
Technical Committee on Contract Matter Meeting under the framework of ASEAN
Rubber Business Council on 12 May 2018. The annual dinner was numerously
attended by over 1,000 guests, including delegates from various government
agencies, private organizations, dignitaries and industry players in the
country and from abroad. It was our great honour to invite Mr. Grisada
Boonrach, Minister of Agriculture and Cooperatives to participate and deliver
an opening address of which the key matters are as follows.
Natural
Rubber is one of the most important agricultural products of Thailand and the
world. Thailand became the worldâs biggest producer and exporter in 1991. In
2017, Thailand produced 4.42 million tons of natural rubber. We exported 4.09
million tons, generating export revenue of 8.49 billion US$.
Last
year has been the most challenging time for rubber industry. Rubber price
dropped sharply in November 2017 to 44.49 Baht per kilogram in line with
strengthening baht but moved in the opposite direction to the global economy
which recovered significantly and expanded considerably. Ministry of Agriculture
and Cooperatives carried out major projects through Rubber Authority of
Thailand to solve the problem of falling rubber price, namely promotion of
rubber consumption in government sector to absorb rubber output in the market
and credit support scheme for value-added rubber processing.
In
response to NR falling prices, Thailand, Indonesia and Malaysia under the
framework of International Tripartite Rubber Council (ITRC) had a meeting in
March 2018 in which Thai government discussed cooperation on rubber
stabilization, rubber farming development and sustainable rubber industry.
Among important matters is the follow-up of the Agreed Export Tonnage Schema
(AETS) implemented by exporters in Thailand, Indonesia and Malaysia. During the
recent ambassadorial meeting of ITRC and Vietnam, the Ministry proposed the
following 5 measures:
1.
Thailand is in the process of establishing a joint venture between Rubber
Authority of Thailand and Federation of Nationwide Rubber Farmers to collect
and distribute Ribbed Smoked Sheets, block rubber, compound rubber and
concentrated latex.
2.
Production management: Thai government attempts to cut rubber trees in improper
areas to plant other crops;
3.
Intercropping of rubber and other plants of economic importance; and Promotion
for domestic consumption of rubber in government sector in the form of ponds,
flooring and road construction;
4.
Tapping holiday plan with two tentative measures to reduce rubber output:
1) 3-month
tapping holiday from May - July 2018 in the area of 480,000 hectares;
2) 1-year
tapping holiday all over the country each every fortnight (tap for 15 days and
stop for 15 days);
5.
Production and price control: Rubber has recently been declared a controlled
product, and rubber price is now monitored by Ministry of Commerce.
To
achieve all those, concrete and close cooperation among us will bring about our
mutual goal, that is to say, fair and stable price.
TRA Annual Dinner 2018 received a huge success
contributed by cooperation from government sector and both domestic and foreign
private sectors, especially cooperation and spirit of TRA Management Committee
members and TRA staff. On behalf of the Thai Rubber Association, I wish to
thank everybody concerned. I consider this special occasion a big step towards
closer relation in the rubber industry among the producing and the consuming
countries.
30 May 2018
