The Thai Rubber Association organized the annual dinner on May 8, 2015 at Centara Grand, CentralWorld, Bangkok for the celebration of rubber industry prosperity and for the rendez-vous of brothers and sisters in rubber business community. In the morning of the same day, TRA also organized a golf tournament at Muang Kaew Golf, Samutprakarn. In addition, TRA served as a host organization of the 13th Meeting of the Technical Committee on Contract Matters in conjunction with the annual dinner, attended by Indonesia, Malaysia, Singapore, Vietnam and Cambodia. TRA invited delegates from various government agencies, private organizations, dignitaries, rubber businessmen from both in the country and abroad. Over 1,000 guests attended this special event. It was our honour to invite Mr. Chawalit Chookajorn, Permanent Secretary of Ministry of Agriculture and Cooperatives to participate and deliver an open speech. The key address is as follows.
Since October 2011, NR prices have dropped sharply and touched the deepest level in September 2014. This was seen in FOB RSS3 price at 53.12 Baht per kilogram due to the slow economic growth of China, which is the world’s biggest rubber consumer. Also, forecast of rising rubber output resulted in excess supply in 2014, coupled with constantly declining crude oil price making investors resorted to other commodities.
The Thai government sought to solve the problem of falling rubber price to relieve livelihood hardship of farmers. The cabinet approved various projects, namely farmers’ income compensation project, farmers’ loan project for additional job, processing farmers’ loan project, processing farmers’ loan project for stockpile working capital and buffer fund project. Additionally, the cabinet also approved rubber processors’ loan project to promote rubber domestic consumption.
In response to NR falling prices, Thailand, Indonesia and Malaysia under the framework of International Tripartite Rubber Council (ITRC) had a meeting in February 2015 to discuss rubber situation and NR price stabilization. The meeting was of consensus that the three countries restrict expansion of cultivation area and cut old rubber trees for replanting in 6-7 years. Also, the meeting agreed upon invitation to Vietnam to join ITRC; negotiation with China; to seek sustainable and fair price for both buyers and sellers in long run; to push forward the establishment of regional rubber market and to consult with Secretary General of ASEAN to establish ASEAN Rubber Council.
Another significant step towards accelerated movement is that the Thai government agreed upon a royal decree setting up Rubber Authority of Thailand as a central body directing the country’s integrated rubber management and administration as well as promoting Thailand as the world’s center of rubber product industry. The decree is currently in the process of legislation of the National Legislative Assembly and will be enforced in the near future.
He insisted that concrete cooperation and close coordination among countries concerned is necessary for the achievement of our common goal in establishing a fair and stable price for maximum benefit of all.
TRA Annual Dinner 2015 received a huge success contributed by cooperation from government sector and both domestic and foreign private sectors, especially cooperation and spirit of TRA executive committee members and association members. 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.
TRA Annual Dinner 2015