The government of Thailand is still deciding whether or not it will extend its rubber intervention scheme when it expires in March; stocks in the world’s biggest producer of the commodity are likely to rise until then, a senior official said. Rubber stocks held by the Thai government are currently at 200,000 tonnes, up 18% from November, as the latter continues to buy rubber from farmers to prop up prices.
“Although prices have rebounded substantially, we will continue to buy until the scheme expires at the end of March as we need to support farmers,” Yuthapong said. In 2012, The government approved 45 billion baht (US$1.51bil) to buy rubber from farmers in a bid to shore up prices which had more than halved since hitting record highs in 2011 as demand shrank alongside a faltering global economy.
In August, Thailand has agreed , along with other major producers Indonesia and Malaysia to cut exports by 300,000 tonnes in total, helping to lift prices. The three countries account for 70% of global natural rubber output.(RJA)
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