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Wednesday, August 10, 2022

Thailand Wants Rubber Price At 60 Baht Per Kg

BANGKOK, Oct 16 (Bernama) — Thailand wants to see rubber price at 60 baht (100 baht = RM10.70) per kg and will be launching a 58.5 billion baht package measures starting from November to tackle the current weak rubber price.

“We believe the price will increase to 60 baht per kg in a month or two months,” said Deputy Prime Minister in charge of Economic Affairs, Pridiyathorn Devakula, after chairing the National Rubber Policy Committee meeting at the government house here Thursday.

The measures will proposed to the government at the weekly cabinet meeting next week, he said.

The figures include 20 billion baht from the Bank of Agriculture and Agricultural Cooperatives (BAAC), a portion of which would be for the Rubber Estate Organisation (REO) to buy rubber from the market and cooperatives (co-ops) stockpile.

BAAC will also provide soft loan of 10 billion baht for rubber co-ops to buy rubber sheet for pelletizing to sell to the REO.

“We dare to buy because we have already done the transaction for delivery of the merchandise in the future.

“Now we already have the orders for next month and every month, that why we dare to buy out, ensuring it would not be a ‘dead stockpile’,” he said.

At least six commercial banks have already willing to provide together soft loan 10 billion baht for the private sector to buy natural rubber latex from farmers.

The interest on all the loans under the measures will be at five per cent, but the the government will subsidise 3 percentage points of the interest rate.

Pridiyathorn said the government would help the small rubber farmers by giving 1,000 baht per rai (0.16 hectare) per family with maximum rate of 15,000 baht per family, which would cost the government 8.5 billion baht.

Meanwhile Uthai Sonluksub, chairman, the Committee on Macro Economic and Public Finance, the National Economic and Social Advisory Council, expected that this year Thailand will produce about 3.7-3.8 million tonnes of natural rubber, less than the earlier forecast of 4.2 million tonnes.


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