The Thai government announced that it will buy rubber directly from farmers to appease their worries because of the seven-year price low.
Some rubber farmers demanded a price of 60 baht (US$1.65) per kilogram, but the government did not confirm their buying prices. The government only said it will buy 200,000 tonnes of rubber at up to 60 baht per kilogram.
The government is also distributing 4 million bags of rice to around 800,000 rubber farming families.
Thai Prime Minister Prayuth Chan-oca ordered state agencies to used more local rubber, and said that 100,000 tonnes of rubber will be used next year.
Thailand is the world’s top rubber producer and uses 1.4 million tonnes of the 4 million tonnes it produces every year.
“We want to see the government drive rubber prices to our goal of 60 baht per kg within 30 days,” said Boonsong Nubthong, president of the Thai Federation of Rubber Farmers to Reuters.
Thailand’s benchmark unsmoked rubber sheet (USS3), which farmers sell to factories, was quoted at 33.80 baht (US$0.93) per kg on Tuesday, the lowest since Dec. 2008.