Multiple Measures to Raise the Rubber Price

Krisada Bunrach, minister of Thailand Agriculture and Cooperatives, said that the annual capacity of rubber is 4,500kt in Thailand, only 500kt of which is used in Thailand and the rest of which is exported. NR prices decreasing is inevitable. Therefore, the Thailand government has taken multiple measures to encourage the processing and usage of rubber in its domestic market. Rubber will be widely used in various products, such as rubber gloves, shoes, beddings, conveyor belt, rail, rubber hose, transportation facility, sports ground, amusement park, pavement and others so as to reduce Thailand’s dependence on rubber export. Meanwhile, tax on rubber products will be reduced to encourage Thailand companies and foreign companies to invest and build rubber processing plants in its eastern regions, especially EEC.

In addition, the Ministry of Agriculture has decided to increase its usage of rubber and take some long-term and middle-term measures to boost the rubber prices. For example, 1 million mt of rubber will be used for road construction of 0.3 million kilometers across the country. Besides, the Ministry of Agriculture will also reduce the rubber planting area to help the price rise.