Thai farmers plan protests to force the military government to provide more support for rubber prices and will take to the streets this week in defiance of martial law, a spokesman for farmers' groups said on Monday. Martial law has been in place since May and prohibits all protests and political gatherings of more than five people. The army staged a coup later in May to end months of political unrest.
Soontorn Rakrong, a spokesman for 14 groups based in the south, said some farmers in the world's top rubber producer had killed themselves because the government had failed to soften the blow from a collapse in rubber prices. Weak demand, particularly from top rubber importer China, amid a supply glut has pushed global prices down to five-year lows. Thailand's benchmark unsmoked rubber sheet (USS3), which farmers sell to factories, was quoted at 43 baht ($1.30) per kg on Monday. "Some people have hanged themselves because they can't stand it any more," Soontorn told Reuters. "The production cost is 65 baht per kg but the market price is 40 baht."
Deputy Agriculture Minister Amnuay Patisse said measures to push the price of USS3 rubber up to 60 baht per kg were under way. These include direct buying of rubber from producers, while the government has also promised handouts to farmers. "We will start buying above market prices to push up rubber prices but I can't say when the price will reach 60 baht per kg," Amnuay told Reuters. Thailand has sold 200,000 tonnes of rubber to China's Hainan Rubber Industry Group, Amnuay told Reuters on Monday, taking sales to the Chinese firm to over 400,000 tonnes in two months.
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