[11 Feb] Thai Government Plans to Launch the Second Phase of Its Initiative to Expand Rubber Plantations Nationwide

The government plans to launch the second phase of its initiative to expand rubber plantations nationwide, with a target of 1 million rai in new growing areas by 2012, the Bangkok Post reports.

The project, approved by the Rubber Policy Committee last month, has an initial budget of 11.42 billion baht.

The expansion is expected to increase natural rubber supply by 250,000 tonnes per year from 2017.

The project could help Thailand secure its status as the world's major rubber exporter over the next 10 years, the committee said.

Last year, Thailand produced about 3.3 million tonnes of natural rubber from its 11.9 million rai of plantations. Nearly 3 million tonnes were exported.

Earnings from the additional rubber products are estimated at about 20 billion baht a year. The expansion could benefit more than 100,000 planters.

The new plantations would be created in the North, Northeast, East and Central regions, said Piriya Eakwanich, deputy director of the Office of the Rubber Replanting Aid Fund, the project's supervisor.

The office has been allocated 2 billion baht to supply rubber saplings to planters.

"The plans and budget have yet to be finalised as expansion plans to cover provinces in the South are being considered," Mr Piriya said.

The office will meet on Thursday to conclude the process before seeking cabinet approval. If approved, in the project's first year the office will seek to prepare 200,000 to 250,000 rai of plantations ahead of the rainy season.

A committee chaired by Deputy Prime Minister Suthep Thaugsuban has also agreed to change the way rubber saplings are supplied to farmers.

Planters will be able to procure saplings from authorised plant nurseries, instead of having to go through a private company with a contract to produce and distribute saplings under the scheme.

In 2003, CP Seeds won a 1.4-billion-baht contract to provide 90 million saplings for a 1-million-rai rubber plantation project from 2004-06.

The project, initiated by then-deputy agriculture minister Newin Chidchob, was highly controversial and led to 44 state officials and businessmen being charged with malfeasance.

Last September, the Supreme Court acquitted all 44 defendants.

Driven by soaring fuel costs and strong demand, Thailand's rubber exports generated 223 billion baht in revenue in 2008, up by 15% from a year earlier. But earnings dropped by 34% to 146 billion in 2009 as the global economy slowed.