Thai rubber industry "shedding" the Chinese economy slowdown

The Thai government has pledged to support rubber farmers to minimize the damage and loss caused by the price on the world market "plunge".

Commenting on the decision rubber subsidized by the Government of Thailand, newspaper "Financial Times" (UK) suggests that concerns about slowdown of the Chinese economy is impacting negatively on the East South Asia, especially Thailand.
Many rubber farmers in southern Thailand has suffered damage and heavy losses due to price decline. Some even threatened to protest, marches and hunger strikes to express his annoyance that.
Against this backdrop, the Government of Thailand is committed to buy rubber from farmers at prices higher than the market price. The cause is thought to concerns about growth prospects of the Chinese economy has caused rubber prices on the world market dropped to its lowest level in seven years.
It is considered as a serious problem for the Thai authorities as they attempt to search and maintain the support of the farmers in the South.
Dr Chayo Trangadisaikul, Deputy Secretary General of the Federation of Thai Industries, said that stagnation in the Chinese auto industry caused demand for Thai rubber fell quickly. This situation can last for several years or longer.
According Chayo, purchasing latex according to market prices higher than the Thai government commitment can only temporarily solve the current difficulties. In the long run, this is not a solution to the problem of rubber.
The price of rubber futures on the Tokyo market fell 12/1 lowest since 3/2009. Thailand exports about 90% of rubber production, 50% of which is to the China market.
Thai Prime Minister Prayuth Chan-ocha urged rubber farmers need calm. He also pledged the government will endeavor to support rubber prices and deploy multiple public works projects to increase the demand for rubber products. The Thai government is expected to begin purchasing plan latex from next week.
In the period from 2010-2013 year, Thai farmers have massively expand rubber plantation area by automobile manufacturing industry in China grew sharply, pushing up demand. Now, when prices fall, they suffered many losses.
According to some opinions, rubber prices have reached at least 45 baht / kg (around $ 1.24 / kg), the new guarantee production costs for farmers Thailand. /