Nong Khai _ The CP Group, under fire for allegedly supplying poor quality rubber tree saplings to farmers, has vowed to supply up to 39 million saplings to the Agriculture Ministry this year, about 10 million units above the contract.

At the same time, Sumeth Pinyosnit, area president for Thailand of the Crop Integration Business for the CP Group, dismissed reports that more than 20% of the rubber saplings distributed by the group last year were dead on delivery because of substandard quality.

He cited a statement by Deputy Agriculture Minister Newin Chidchob that the chief cause of a sapling problem was drought. Mr Newin also said media reports that three million saplings died were exaggerations, and that about one million were dead on arrival.

Mr Sumeth blamed delivery delays on bureaucracy within the ministry, and he insisted the group would speed up distribution this year, and deliver up to 39 million saplings.

Under a three-year contract worth 1.4 billion baht with the Agriculture Ministry, the CP Group was to supply through the Rubber Replanting Aid Fund Office 18 million rubber saplings last year, 27 million this year, and 45 million next year.

The programme is part of the government's plan to extend rubber plantations, long associated with the South, to 36 provinces in the North and the Northeast.

The project is expected to involve up to 150,000 planters, who will be provided with startup loans of 5,000 baht per rai.

Satipunt Thummasati, director of the Office, said that despite negative news of the sapling distribution, he believed the project has successfully opened rubber related industries to the northeast region.

At least two latex manufacturers, Thai Rubber Co and Eastern Rubber Co from Rayong planned to purchase rubber output from the area, and more investors are reportedly in line.

"We were also contacted by representatives from Bridgestone for more information in setting up a tyre factory here," Mr Satipunt said.

According to Mr Satipunt, a number of farmers from Nong Khai have joined the rubber project, which covers over 170,000 rai and is the largest ever in the region.

Pisut Srisawang, who grows about 430 rai of rubber in Nong Khai, said he has a contract to supply 450,000 standard saplings for CP this year. The saplings will be distributed to planters who joined the project, such as Samrong Mungkunsang.

Mr Samrong said he bought 540 saplings from CP to grow on six rai of fields, financed by a loan from the state bank. He hopes to earn more income in light of high rubber prices over the past few years.

Current rubber prices are about 54-55 baht per kg, up from around 40 baht two years ago, reflecting rising world demand. In particular, Chinese demand this year is expected to reach 1.8 million tonnes.

As the world's major producer, Thailand grows rubber trees on 12.6 million rai, yielding 2.86 million tonnes of rubber, mostly for export

On 29 June 2005

  
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