Thai govt through state-owned Rubber Estate Organization and exporters plan to set up a fund to trade rubber on the Agricultural Futures Exchange of Thailand, or AFET, according to the farm ministry.
* Initial fund of 210m baht is expected to buy about 42,000 tons of rubber and increase avg trading volume by about 300-400 contracts a day vs about 300 contracts a day at present, deputy farm minister Yuttapong Charasathien says in statement.
* Thailand aims to boost rubber price to 110b/kg: Yuttapong
* Rubber trading plan is expected to start in July
* Plan will help reduce risk of price volatility and to develop a price benchmark in the future
* 7 parties forming the fund are International Rubber Consortium Co., Rubber Estate Organization, Thai Hua Rubber Plc, Sri Trang Agro-Industry Plc, Thai Rubber Latex Corporation (Thailand) Plc, Southland Rubber Co. and Von Bundit Co.
* Each party will contribute 30m baht each
Source: Bloomberg
