Rubber price volatility in the world market is subject to market mechanism such as demand - supply and global economy. Rubber price has steadily continued its decline since October 2011, affecting all sectors involved, especially farmers of over one million families, accounting for over 6 million people, including entrepreneurs. The falling rubber price is expected to have been caused by concerns over the impact of the debt crisis in Europe, Chinese restriction of economic growth due to tightened liquidity, several year high rubber stock of 366,900 tons in Qingdao in 2013 and volatile price of crude oil. However, the rubber price has been driven by supportive factor i.e. tight supply due to global climate change caused by El Nino. In 2011, Thai USS price announced by Central Market reached lowest level at 80.01 Baht per kg, 78.93 Baht per kg in 2012 and 72.14 Baht per kg in 2013 respectively (data from Songkhla Central Rubber Market). The price trend has moved downward up to present.

In response to the price crisis, all related sectors, both public and private as well as agricultural organizations closely witnessed the situation and solve the problem. The Deputy Head of the Economic Department of the National Council for Peace and Order (NCPO), Gen. Chatchai Sarikalaya arranged the 1st/2014 Natural Rubber Policy Committee Meeting on August 7, 2014.

The 2nd/2014 Natural Rubber Policy Committee Meeting held on September 19, 2014 was chaired by Gen. Prayuth Chan-ocha, Prime Minister cum Committee Chairman, participated by public and private sector as well as agricultural organizations. On behalf of the Thai Rubber Association, I, as the President and Committee Member of Natural Rubber Policy Committee together with Mr. Bundit Kerdvongbundit attended the meeting. Gen. Prayuth Chan-ocha, Committee Chairman emphasized on connection among upstream, midstream and downstream sectors and considered rubber a national agenda.The meeting unanimously approved 11 systematic rubber development projects:

1) 10 billion Baht project on capital for agricultural organizations in compiling rubber
2) 5 billion Baht project on credit for rubber processing farmer group
3) 15 billion Baht project on credit for rubber product manufacturing enterprises
4) market development project under rubber market restructuring plan
5) project on new rubber export market
6) project on investment promotion for domestic rubber product manufacture/ rubber product manufacturer promotion project
7) project on establishment of Rubber Industry Development Institute
8) project on production quantity restriction
9) project on cost reduction
10) project on technology transfer and
11) project on extra income generation for rubber growers based on philosophy of self-sufficiency.

Additionally, the meeting also approved the establishment of Rubber Product Operation Center to serve as a center for solution to problems on rubber product.

From the above said situations, every sector involved, private and public sector as well as farmers shall work together for common goal and benefit of all, to bring about solutions to overcome the ongoing price crisis.

The Thai Rubber Association has witnessed the problems and impact of rubber price volatility. We are willing to cooperate with all parties involved to solve falling price and ultimately stabilize the price for benefit of rubber community as a whole.