Thailand approves rubber price guarantee scheme for farmers

Illustrative image (Photo: AP)

Bangkok (VNA) – A scheme worth 7.6 billion THB (215 million USD) has been approved by the cabinet of Thailand to guarantee rubber prices for 1.6 million farmers registered with the country’s Rubber Authority.

The move, the fourth phase of an ongoing programme, promises a 40-60 split on revenues between rubber tappers and plantation owners respectively, the cabinet said in a statement.

The price guarantee for the 2022 - 2023 season covers 1.6 million rubber farmers with a combined 18.2 million rai (2,912ha) of rubber plantations, according to the National Rubber Committee.

The progamme, managed by the state-owned Bank for Agriculture and Agricultural Cooperatives, offers compensation if rubber market prices fall below the benchmark. It will give a guaranteed maximum price of 60 THB per kg for raw rubber sheet, 57 THB per kg for latex, and 23 THB per kg for cup lump, limited to 25 rai (4ha) per family.

During a recent visit to Nakhon Si Thammarat province, Thai Prime Minister Prayut Chan-o-cha said that tackling falling crop prices remains a priority as the government is trying to come up with the best solution.

Most of Thailand’s rubber products are exported, with only one-third kept for domestic use./.