Thai Government Ready to Raise Budget for Natural Rubber Purchases -Minister

The Thai government is ready to raise its budget for intervening in the natural rubber market if necessary, Deputy Agriculture Minister Natthawut Saikua said Tuesday, without specifying an amount.

The Thai government in January approved a THB15 billion ($475 million) plan to raise prices for natural rubber, but prices have continued to decline in recent months due to the global economic slowdown. The extended price decline has triggered sporadic protests by growers in Thailand.

The government also plans to raise its purchase price for natural rubber bought as part of the price intervention plan, Mr. Natthawut told reporters, after a Cabinet meeting in Bangkok.

The planned increase in the purchase price is subject to approval by the Ministry of Agriculture and Cooperatives later in the day, he said.

The Cabinet also agree in principle to compensate the government-linked Rubber Estate Organization for any losses it may incur as a result of the price intervention plan, Mr. Natthawut said.

Thailand is the world’s largest producer and exporter of natural rubber, accounting for one-third of global output.

Source: Dow Jones

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