BANGKOK – In order to raise the rubber price, Thai Government plans to buy nearly 7% of the country’s annual production in first quarter of 2012, but according to analysts, this could end up creating a mess causing huge stocks in the country affecting the prices to move down drastically.
The government in January announced its plan to invest 15-billion-baht (US$490-million) scheme to buy unsmoked rubber sheet.This decision is to help the farmers to earn more income.
Meanwhile, according to analysts, on the back of rising output this year and slow global economic growth could back fire the plans of the Thai government.
The global rubber production in 2011-12 is expected to be around 10.5 million tonnes compared to 10.3 million tonnes and according to reports, production in coming years is expected to rise in the major producing nations like Indonesia and Thailand on increased tapping areas.
This may abrupt the proper execution of the plans and could end up with huge stocks in the country.
Around 1.3 million people in Thailand is employed in rubber production.
Meanwhile, a team from Vietnam Rubber Group visited Rubber Board of India to study the natural rubber crop processing and effluent treatment, biogas generation and its utilisation in the country.
For March delivery, in Tokyo Commodity Exchange (TOCOM), the rubber traded down 3.9 yen to 320.9 yen/kg and in National Multi Commodity Exchange (NMCE), the commodity traded at Rs 19,010/tonne on 15th March at 11:45 IST.
Source: Commodity Online