THAILAND: Government’s rubber purchasing plan has driven up market prices

Rubber Authority of Thailand’s (RAT) plan to purchase up to 100,000 tons of rubber from rubber farmers at a maximum price of 45 baht/kg has fallen far short of the target but the program has driven up market prices.

RAT governor Chao Song-arvuth said that RAT had purchased through its trading points only 2,857 tons of rubber sheets, cup rubber and latex worth a total 120 million baht from 26,400 farmers during the 25 January 2016 to 10 March 2016 period.

He admitted that the amount of rubber bought by RAT was small compared to the set target of 100,000 tons. However, he noted that the purchase had helped drive up rubber market prices to 42-43 baht/kg compared to 34-35 baht/kg a few months earlier.

Chao disclosed that a total of 753,000 farmers have joined the government’s rubber subsidy program which ended on 29 February 2016. Under the program, each farmer who owns a maximum of 15 rai of rubber plantation will receive 1,500 baht/ rai in subsidy.

Out of the 753,000 farmers registered, 661,000 have received the subsidy totalling 4,911 million baht. The recipients include 337,000 farmers and 323,000 rubber tappers. The rest will get their pays within 15 March 2016.

Meanwhile, Agriculture Minister Gen Chatchai Sarikalya will pay a visit to Malaysia’s rubber research institute to find out if any research works can be applied for use in Thailand. The minister said that, if it is necessary, the research works may be bought for application instead of waiting for domestic research works.

Source: Daily “Thai Visa News”, Bangkok; 12 Mar 2016
(Syed Rashid Ali, Karachi, Pakistan)