A 20-Year Rubber Development Plan by RAOT

A 20-Year Rubber Development Plan by RAOT

The Rubber Authority of Thailand (RAOT) has formulated a master plan to increase the annual rubber export value from 250 billion baht to 800 billion baht, while establishing a rubber industrial zone in Rayong province, part of the Eastern Economic Corridor (EEC).

The acting director of ROAT, Yiam Thawarorit, said the strategies are designed to help Thailand grow as a middle-income country and will soon be submitted to the Cabinet.

RAOT has hired the University of the Thai Chamber of Commerce (UTCC) to study the 20-year plan (2017-2036), aimed to promote the development of the agricultural sector.

According to these strategies, Thailand's rubber exports will increase from 250 billion baht per year to 800 billion baht, while rubber output will increase from 224kg/rai to 360kg/rai, and local rubber content will increase from 13.6% to 35%. This will push up annual rubber revenue from baht 11,984/rai to baht 19,800/rai. At the same time, the area planted will be reduced from 23 million rai to 18.4 million rai.

During the first five-year period, laws and regulations will be adopted to solve problems related to the rubber field, to promote investment in rubber processing, use of rubber by state agencies and farmer organizations and shift from production and processing of rubber to production of rubber products.

In addition, Thailand will set up rubber product distribution centers at major tourist attractions and hold exhibitions and roadshows throughout the Kingdom and targeted countries.

In the next six to ten years, the goal is to improve the quality of rubber products to meet Thai industrial standards and to use research results for commercial purposes. Rubber export growth will be promoted through the establishment of exhibition and distribution centers, as well as the use of branding and fiscal measures.

During the 11-20 year period, appropriate technologies will be utilized and developed to replace the labor force of rubber production, while establishing an integrated service center involving rubber and rubber products.

A committee will also be set up to ensure the smooth running of the long-term plan. The committee will be chaired by the Permanent Secretary of Agriculture and Cooperatives.

Wichian Kaewsombat, assistant director of UTCC's Center for Business and Economic Forecasting, said that reducing rubber plantings would be achieved by establishing an economic zone, while only farmers who grow rubber in designated areas could obtain government promotional privileges.

The rubber industrial zone will be located in Rayong. At the same time, promotional privileges will be concentrated mainly in South Thailand, the main rubber growing area.

The planned rubber industrial zone will promote rubber processing for exports and is expected to increase its export value from the recent 200-300 billion baht to 800 billion baht in the future.

“When RAOT implements these strategies, it is likely that rubber prices will remain low and compensation may need to be provided to rubber farmers. Meanwhile, when the strategy reaches the 20th year, rubber farmers are expected to make a living on their own.” Wichian said.

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