Thai government boosts domestic demand, rubber prices on the rise

BANGKOK, January 19 (TNA) - Domestic demand for and prices of natural rubber products have been rising, thanks to more purchases by government agencies. Thai Prime Minister General Prayut Chan-ocha led his Cabinet's members, including Deputy Prime Minister Somkid Jatusripitak, who oversees economic affairs, to inspect rubber products displayed at Bangkok's Government House on Tuesday. Deputy Premier Somkid told journalists that government-run Bank for Agriculture and Agricultural Cooperatives (BAAC) and the Government Savings Banks (GSB) have also been ordered to buy 100,000 tonnes of rubber at the total cost of 4.5 billion baht, while the Thai government is prepared to support local rubber growers who want to add values for their rubber products. Industry Minister Atchaka Sibunruang said the Thai Ministry of Justice's Corrections Department wants to buy a large amount of natural rubber after the Federation of Thai Industries (FTI) has joined forces with tyre manufacturers to launch promotions on encouraging car owners to change their tyres. FTI Chairman Supan Mongkolsuthee told reporters that FTI will confer with tyre producers soon on a plan to offer discount for car tyres, pointing out the plan, if implemented, should help increase revenue for tyre manufacturers and, simultaneously, generate money in circulation in the national economy. Meanwhile, Uthai Sonlaksap, Chairman of the Rubber Council of Thailand, assessed that the Thai government may not have to spend a 4.5 billion baht-budget on purchasing 100,000 tonnes of natural rubber from local growers, as planned, because there are positive signs that rubber prices on the domestic market have started rising after the government has stepped in to assist growers. Uthai noted that the domestic price of natural rubber ribbed smoked sheets, for instance, has increased to 39 baht a kilogramme currently, from 32 baht a kilogramme recently, with signs that its price should increase steadily because rubber left in domestic stocks is not much, while growers are about to stop tapping natural latex and traders need to sell rubber fast enough to avoid their loss. Uthai called for the Thai government to promote processed rubber products in Thailand, acknowledging that restructuring of the Thai rubber sector is also needed as a sustainable solution. (TNA)