The Thai cabinet has approved the Rubber Estate Organisation’s (REO) request for a loan of six billion baht from the Bank for Agriculture and Agricultural Cooperatives (BAAC) to buy rubber products to shore up prices.
The decision was unveiled yesterday by Deputy Agriculture and Co-operatives Minister Amnuay Patisae. Mr Amnuay said the cabinet approved the REO’s request on Wednesday. Of the six billion baht, the REO — an agency under the Agriculture and Cooperatives Ministry — will spend four billion baht buying natural and smoked rubber sheets from farmers, Mr Amnuay said.
The rest will be spent on latex and rubber cup lumps. The move is aimed at bolstering rubber prices for the next rubber-tapping season which begins in May, he said.
For the next rubber harvesting season, the government wants to maintain prices for natural rubber sheets at 60 baht per kilogramme, prices of smoked rubber sheets at 65 baht/kg, and latex prices at 50 baht/kg, Mr Amnuay said. At present, natural rubber sheet costs 47 baht/kg. Smoked rubber sheet costs 48.50 baht/kg and latex costs 44 baht per/kg.