Thai government's solutions to cushion domestic rubber prices

BANGKOK, January 14 (TNA) - The Thai government's moves to assist local growers have begun to boost natural rubber prices on the domestic market, as the administration is trying to solve low rubber prices in a sustainable manner. Thai Deputy Prime Minister and Defence Minister General Prawit Wongsuwan told journalists of the prospect on Thursday, saying that a decision announced by the government earlier this week to directly buy 100,000 tons of natural rubber of all kinds from farmers, expected to begin later this month, is among the sustainable solutions. General Prawit revealed that all the 100,000 tons of natural rubber will be processed in the country to then be acquired by government agencies which present their demand for rubber products, while a rubber industrial estate will also be established in the country to solve all rubber problems in the future. General Prawit, however, recommended that balancing supply and demand be a long-term solution to Thai rubber plantations, pointing out that earlier high rubber prices had resulted from high global oil prices but when global oil prices have been falling, rubber prices and demand have followed suit. According to latest reports, the Thai government has already decided on purchasing the 100,000 tons of natural rubbers directly from local growers at no higher than 45 baht per kilogram. Like other several public agencies, the Bangkok Metropolitan Administration (BMA) has, meanwhile, announced to spend a 80-million baht budget on purchasing over 2,000 tons of natural rubber from local growers at the price of 40 baht per kilogram. Bangkok Governor MR Sukhumbhand Paribatra told journalists of the plan on January 13, acknowledging that BMA will use the purchased rubber in its projects, including the improvement of a sport field road surfaces, playgrounds and running lanes in the capital. (TNA)