Rubber and rubber product industry is an important sector in Thai economy, involving 1.6 million families of farmers which account for over 6 million people across the country, also including entrepreneurs, laborers and government officials. In 2014, Thailand produced 4.32 million tons of natural rubber, out of which 540,000 tons (13%) were domestically consumed and exported 3.76 million tons (87%), generating export revenue of 242,785 million Baht. Thailand has been the world’s biggest rubber producer and exporter since 1991. Thai rubber is highly dependent on export market. The exports are mainly in the form of primary processing products, viz. TSR, RSS, compound rubber and concentrated latex. The major export destination of Thai rubber is China (2.29 million tons, 61%), followed by Malaysia (610,000 tons, 16%), Japan (260,000 tons, 7%) and USA (150,000 tons, 4%), data from Rubber Research Institute of Thailand.
Currently, the rubber administration of the government is mainly carried out by subdivisions of the Ministry of Agriculture and Cooperatives, viz. Rubber Research Institute of Thailand (RRIT). The RRIT carries out rubber research and development on production, economics, marketing, processing and technology transfer with the Office of Rubber Replanting Aid Fund (ORRAF). The ORRAF helps in replantation of genetically developed rubber plant in old and new area, promotes technology transfer with farmers and levies export tax (CESS). The Rubber Estate Organization (REO) improves production, processing, distributing and connecting technologically within the value chain. Other government and private entities involved are the Ministry of Commerce, the Ministry of Industry, the Ministry of Science and Technology, academic institutes, Board of Trade of Thailand, Federation of Thai Industries, National Shipper Council of Thailand, Thai Rubber Association, Thai Latex Association, Thai Hevea Wood Association and Thai Rubber Glove Manufacturer Association.
From the above data, it has been observed that rubber administration of Thailand is carried out by a number of departments in a redundant manner with lack proper collaboration. Therefore, the restructure of rubber administration, research and development, price stabilization, fair business and allocation of benefits for stability of business and sustainable livelihood of farmers become necessary to Thai economic and social development. The Thai government therefore agreed to establish Rubber Authority of Thailand to monitor the integrated rubber administration of Thailand unitarily and independently to maximize the productivity and efficiency of rubber industry. On 14 May 2015, the National Legislative Assembly passed the Rubber Authority of Thailand Bill. The Bill was graciously signed by His Majesty King Bhumibol Adulyadej and became enforced as of 14 July 2015.
In conclusion, the Rubber Authority of Thailand Bill is to be a big step of rubber administration restructure of Thailand which will bring about rapid growth of rubber industry and higher competitiveness of Thai rubber sector at international level.
The Rubber Authority of Thailand Bill