Sangkhlaburi -- The Mon community is keen on news relating to the global financial meltdown and its affect on their local business community, Kaowao has learnt.
Kaowao reporters were asked by many local people to write more business news and the current exchange rate rather than the current political situation. “I was in the village festival in Ye Township and many restaurant owners said the people are hanging on to their money and not spending like they did last year.
The villagers are keen to know about the global market and its affect on the price of rubber and rice. They want us to report on news about the money exchange rate and consumer prices,” said a field reporter in Mon State.
The soaring Burmese Kyat has hit the local and migrant communities in the pocket book from the unstable rate of exchange. In Bangkok, the Kyat in the market is valued at 28 to one Thai Baht. Last year one Baht was valued at 38 Kyat and has come down to 25 before bouncing back up to 28.9 with some predicting it may stay that way for awhile.
In the Three Pagodas Pass border area, many rubber plantation workers are facing job cuts as rubber plantation owners begin retrenching by cutting costs and stopping production due to the fluctuating price in the rubber market and dwindling sales. “We need to keep up-to-date on what is happening in the global market. The owners are not making a profit and are reluctant to produce and grow rubber. At the opening season last year, rubber price started between 60-65 Baht per kilogram and went up to 95-100 Baht. But this year the market started at 41 Baht per kilogram where it has stayed,” said Nai Bein Hnok from the border town.
The owner normally pays out 45 percent of earnings to production workers who make the rubber sheets. The remaining 65 percent for the owner includes production and transportation costs. The expense for growing rubber has also gone up as the owner spends about 6,000 Baht for 1,000 plants at the beginning of the growing cycle.
Meanwhile, people in Ye township see some hope in the future market because the high price of gasoline and gold brings in profit from their garden products. The price of gold is 520,000 Kyat up from 500,000 per Kyat-Tha weight. Dried betel nut has gone up from 1,000 to 1,200 per Viss.
However, a local businessman warns that the wild fluctuation in prices is due to the upcoming traditional New Year Songrant Festival. At this time, people spend more money and the market is active and likely will go down after the festival.
Poverty and inflation brings out more thieves and only the community will suffer in the long run.
