Serious probe into Chinese firm's planned long-term lease of vast rubber plantations

BANGKOK, Oct 20 (TNA) -- Agriculture and Cooperatives Minister Grisada Boonrach has ordered the Rubber Authority of Thailand (RAT) to carefully look into a Chinese company's request to rent 24,400 rai of rubber plantations in Nakhon Si Thammarat province. He said that Shanghai-Thai Rubber Co filed the request with him in September to rent 20,000 rai of rubber plantations from the RAT and 4,400 more rai from the Royal Forest Department in Krungyan sub-district of Thung Song district for 30 years. The company promised to buy latex 20-30 baht per kilogram higher than the market price and rehabilitate the rented areas afterwards. It informed the minister that it intended to rent the rubber plantations to feed latex to its manufacturing of medical products including skin care products and its business would help the RAT solve its loss-ridden operations and solve the problem of low rubber prices for local farmers. The company also sought permission to build three 10-megawatt power plants and a sawmill. Mr Grisada said he ordered the SAT to study the proposal, relevant laws and possible impacts on farmers thoroughly. Initial discussion with the RAT found that the lease might not be possible because designated areas were not a special economic zone, the firm was a foreign business and it sought a long-term lease. Shanghai-Thai Rubber had a registered capital of 50 million baht. It had implemented a project worth 500 billion baht and shut down its businesses for nearly two years. (TNA)