What's new in business news: September 2, 2013

Low-income earners vulnerable to govt price hikes, low rubber prices slow south's economy & shrimp epidemic hits Asia.

ECONOMY

Low-income earners more vulnerable to price hikes 

Low-income earners are bracing themselves for hikes in the price of liquefied petroleum gas (LPG), electricity and expressway tolls this month.

Low-income earners are more vulnerable than high-income earners whenever the cost of living surges, especially those caught in a debt trap. The LPG price hike may also have a ripple effect pushing up food prices.

For several years, LPG had a fixed price for the household and transport sectors, but as energy prices continued to increase, the government decided to end the subsidy gradually and float the price to reflect real costs. 

The cooking gas price began to rise by 50 satang per kg yesterday, and the increase will continue monthly at the same rate until October 2014. By next February, the price will be the same in both sectors, at 21.38 baht. After that, the increase will continue for both sectors until the price reaches 24.82 baht in October 2014, meeting the actual cost of producing LPG.

[Read full story here ]

AGRICULTURE 

Low rubber prices slow southern economy

Declining rubber prices will likely take a toll on the southern economy, with sales of vehicles and housing projects expected to be tepid for a long time. Exporters of rubber products complain their revenue has fallen, as buyers have reduced purchases, particularly buyers in China.

Sales of Honda motorcycles in the five southernmost provinces - Satun, Songkhla, Yala, Pattani and Narathiwat - have dropped 20% since last year following rubber prices and reflecting weak purchasing power. 

Rubber planting and related businesses are major sources of income for southerners alongside fisheries and oil palm plantations. Most rubber planters are small and sell latex for 60 baht a kilogramme, only half what they earned two years ago. In the fisheries sector, shrimp has been hit hard by early mortality syndrome (EMS).

An attack by armed men on protesters in the south yesterday killed one protester.  

[Read full story here and here ]

FISHERIES 

Shrimp epidemic: Shortage & rising prices 

dpa News agency

The latest epidemic to hit Asia's booming shrimp industry, Early Mortality Syndrome (EMS), first appeared on Chinese farms in 2009 and gradually spread to Malaysia, Vietnam and Thailand.

70% of the world's shrimp exports come from these four countries and  Thailand, the world's leading shrimp exporter, was first hit by EMS in late 2012 with shrimp farmers losing as much as 80% of their stock.

The disease seems to spread via the water supply but scientists still don't know much about EMS. They do know that EMS is caused by a virus that infects a bacteria in the shrimp, which is creates a toxin which poisons the animal.

Over the past two or three decades, commercial shrimp farms have been hit by 20 viral and bacterial epidemics and new syndromes. This latest shrimp epidemic is expected to last at least a couple of years.

[Read full story here ]