RAOT Project Paves the Way: Thai Agriculture Minister Endorses Thai Rubber in Inaugural Trade under EUDR Regulations, Setting the Stage for International Standards

April 27th, 2024, witnessed a significant step towards bolstering the stability of Thai rubber across its supply chain. At Bunjongburi Hotel in Surat Thani Province, the Ministry of Agriculture and Cooperatives orchestrated an extensive event titled "Ready for EUDR in Thailand." This event marks the initiation of trade traceability through the Thai Rubber Trade platform, aligning with EUDR regulations for the first time. Presiding over the project launch, Captain Thamanat Prompow, Minister of Agriculture and Cooperatives, emphasized the concept of "RAOT ready to reach international standards." This initiative aims to elevate Thai rubber farmers' income levels while promoting environmental consciousness.

Capt. Thamanat revealed that the Ministry of Agriculture and Cooperatives prioritizes the promotion of sustainable agriculture among Thai farmers by effectively managing agricultural resources. Embracing environmentally conscious farming practices (Go Green) stands as a cornerstone of the Ministry's policies. Consequently, Thai rubber farmers and business operators are urged to diligently manage rubber data to align with the EU Deforestation-free Products Regulation (EUDR) and diverse international standards. Notably, the Ministry has been actively advocating for agricultural title deeds within the Agricultural Land Reform areas, encompassing rubber plantations spanning over 9.2 million rai. This initiative aims to grant rubber farmers rightful access to suitable arable land in compliance with Thai laws and EUDR regulations. The objective is to ensure the issuance of rubber tree deeds, facilitating the sustained presence of rubber trees across diverse areas, thereby broadening opportunities for farmers to acquire arable land. Consequently, farmers can leverage their assets for rubber plantation endeavors and engage in ancillary activities such as carbon credit generation within rubber plantations. Such efforts are poised to enhance the value of rubber production and augment farmers' incomes, thereby realizing the Ministry's sustainable farming objectives that prioritize both environmental and societal considerations.

“Capt. Thamanat also highlighted that environmentally-conscious farming offers an avenue for rubber farmers and associated stakeholders to contribute to the preservation of the nation's forests and address global environmental challenges. This approach aims to sustain the entire rubber supply chain, from upstream to downstream activities. He emphasized that such efforts will bolster Thailand's rubber industry, positioning it as a robust and globally recognized entity. The focus remains on cultivating high-value agricultural products while fostering the sustainable management of agricultural resources."

Rubber Authority of Thailand Governor, Mr. Nakorn Tangavirapat stated that the traceable rubber trading Kick Off is underway, facilitated by digital auction methods through the Thai Rubber Trade (TRT) platform, managed by the Rubber Authority of Thailand.  This development marks a significant step in adhering to EDUR regulations, showcasing Thailand's readiness in managing information systems effectively. The systematic collection of rubber yield data from each member ensures traceability of rubber origins in every lot. Furthermore, the utilization of blockchain technology in transactions enhances transparency, accuracy, and reliability, thereby bolstering auditing processes. During this inaugural traceable rubber trading, the auction price surged to 94.01 baht per kilogram, totaling more than 41.2 million baht. Private entrepreneurs acquiring the rubber will process it into rubber products for global sale. Previously, the Rubber Authority of Thailand has already prepared readiness to support the FDA and EUDR involved systematically gathering farmer registration data to identify and distinguish rubber plantations, ensuring traceability of rubber products from Rubbers Farmer’s Institute sold through the Rubber Authority of Thailand central market. As a result, rubber sourced from any member's plantation can be traced back 100%.

Mr. Nakorn further noted that during the event, a Memorandum of Understanding (MOU) between Government Agencies, The Rubber Farmers Institutes and Rubber Business Operators was also signed to promote rubber products in alignment with Thailand's EU Deforestation-free Products Regulation (EUDR). This signifies the collective commitment of all sectors involved in advancing the Ready for EUDR in Thailand (RAOT) project, aimed at meeting international standards and fostering sustainable tire management practices. Such endeavors not only enhance the value and development of the rubber production sector but also contribute to the overall growth of the rubber industry. These efforts lay the groundwork for Thailand to emerge as a leading producer and exporter of high-quality rubber in the long term.

“We are confident that the proactive implementation of measures to enhance the Thai rubber data management system in line with EUDR and other international standards, coupled with a focus on global environmental concerns, will yield positive impacts on the economy, society, and the environment. This will bring benefits to all sectors of the rubber industry, particularly by generating additional income for Thai rubber farmers. As per the Minister of Agriculture's policy, ensuring farmers' well-being is paramount, along with the promotion of high-value agricultural products and sustainable agricultural resources," concluded the governor.

This content is provided by Rubber Authority of Thailand Press Release Team.

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