Thai government discusses rubber problems with private sector

BANKGOK, September 6 (TNA) - Thai Prime Minister and Defence Minister Yingluck Shinawatra chaired a meeting of the Joint Public-Private Sector Consultative Committee (JPPCC) in Bangkok on Friday to discuss how to use more locally-produced natural rubber to boost its market demand and prices. During the discussion, Yingluck urged local industrialists who use natural rubber as their main raw materials to considerably buy locally-made smoked sheet rubbers. Chayo Trang-adisaikul, a rubber product manufacturer, suggested that Thailand maximize the processing of locally-grown natural rubber in order to raise rubber prices, pointing out that speculations of natural rubber prices in futures markets have caused rubber prices to fluctuate. Lakchai Kittipol, Honorary President of the Thai Rubber Association, noted that the natural rubber situation has already bottomed out, but other factors have caused ongoing rubber farmers' protests, cautioning if theThai government intervenes in rubber prices, there will be adverse impacts in the long run. Automobile tyre manufacturers called for speculations-free and adherence to realistic prices of the regional rubber markets, including those in Indonesia, Malaysia and Thailand, acknowledging that the price of synthetic rubber is now as low as 55 baht per kilogram, prompting manufacturers to turn to synthetic rubber. Meanwhile, Premier Yingluck told reporters after the JPPCC meeting that, her government will support the production of processed rubber, with the Ministry of Finance assigned to initially lend about 15 billion baht to local rubber operators in order to boost their production and supply. According to the prime minister, the government and local business operators will build as many factories as possible to process locally-produced natural rubber in order to increase domestic use. As protesting rubber farmers have demanded that the Thai government guarantee the minimal price of raw sheet rubber at 100 baht per kilogram, the prime minister insisted she is waiting for negotiations by the government's rubber price solution committee. The prime minister stressed that her administration sincerely wants to solve the problems of rubber farmers and demonstrators should enter into negotiations because any prolonged protest could affect the overall national economy although the world economy is recovering in the third and fourth quarters of this year. (TNA)