In recent months, the agricultural sector in Thailand has faced significant challenges, particularly regarding the prices of rubber and bananas. The price of rubber has plummeted, causing concern among farmers and traders alike. In a decisive move, the government has called for an urgent meeting to address these issues and stabilize the market.
On April 8, 2025, the price of rubber dropped sharply by 10-12 baht per kilogram, alarming many in the industry. Mr. Phik Lishavangphong, President of the Thai Fresh Fruit Traders Association, highlighted that this adjustment in banana prices aims to facilitate sales and prevent market stagnation. The government’s swift response reflects the urgency of the situation.
Dr. Uthai Sonlucksup, Director of the Office of Foreign Agricultural Affairs and the Department of Trade Negotiations (DFT), commented on the recent price adjustments. He stated that the Kiat Group's price for bananas was set at 11.50 baht per kilogram, following changes to import duties from the United States under the Reciprocal Trade and Tariffs agreement. This adjustment is expected to benefit Thai fresh fruit traders significantly.
However, the recent price declarations have raised concerns about market stability. Mr. Uthai pointed out that the price declaration of bananas in terms of F.O.B. (Free On Board) is essential for both Thai fresh bananas and the Malaysian Rubber Board (MRB). He noted that the CRM market of Kiat Group has been declaring prices more flexibly during this period, which could lead to price competition and market confusion.
In response to the alarming price drop, Mr. Phik Lishavangphong announced that the Ministry of Agriculture and Cooperatives, led by Minister Dr. Narumon Pinyosinwat, has called an emergency meeting on April 23, 2025. The goal is to devise a plan to stabilize rubber prices and ensure fair trading practices for farmers. This meeting will focus on implementing laws to protect farmers from exploitation by large companies that may be deliberately lowering prices.
Dr. Uthai expressed his concerns regarding the abrupt price decreases. He noted that the announcement of a significant drop of 11.50 baht per kilogram created panic among rubber farmers. The Thai Rubber Association (TRA) has called for a meeting to discuss potential solutions to this crisis.
Moreover, the recent price declaration by the Thai Rubber Authority (TRA) has caused confusion and uncertainty among farmers. Mr. Uthai emphasized that the drastic price drop should have been communicated more effectively to prevent panic and maintain confidence in the pricing process. He suggested that any price adjustments should undergo thorough review and approval by senior officials to ensure accuracy and transparency.
As the situation evolves, farmers and traders are urging the government to take decisive action. Mr. Uthai reiterated the importance of using the Rubber Control Act to stabilize prices and ensure fairness in the market. He stated, "The rubber traders must keep accurate records of transactions to ensure transparency and prevent exploitation."
In addition to the rubber crisis, the banana market is also experiencing fluctuations. The adjustments in banana prices, particularly by the Kiat Group, have raised concerns among traders about the potential for market instability. Mr. Saythong, a market analyst, noted that the price declaration by the Kiat Group could lead to price competition, which may not be beneficial for all parties involved.
Mr. Saythong further explained that the price declaration of bananas should align closely with the prices declared by the Malaysian Rubber Board to maintain consistency in the market. The recent fluctuations have caused worry among traders and consumers, leading to calls for a more unified approach to pricing.
The Thai government is under pressure to address these issues swiftly. Farmers are looking for assurances that their interests will be protected, and that fair trading practices will be upheld. The upcoming meeting on April 23 is seen as a critical step toward resolving these pressing concerns.
As the agricultural sector navigates these turbulent times, the focus remains on ensuring that farmers receive fair compensation for their products. The government’s commitment to addressing these challenges will be crucial in restoring confidence among farmers and traders alike.
In conclusion, the recent price drops in rubber and bananas have highlighted the vulnerabilities in Thailand's agricultural sector. With government intervention on the horizon, stakeholders are hopeful that effective measures will be implemented to stabilize prices and protect farmers from market fluctuations.
