HIGHER demand from emerging markets of China, India and Brazil are seen to propel Thailand’s rubber exports, which is estimated to grow by 3 to 5%.
Luckchai Kittipol, honorary president of the Thai Rubber Association said, the industry was expected to end 2012?s shipments with not more than 3 million tonnes, slightly more than the 2.99 million tonnes in 2011.
However, export value in 2012 was lower at 250 billion baht than in the previous year at 300 billion baht.
China’s economic slowdown and Europe’s economic crunch have contributed to the industry’s revenue losses.
With Indonesia and Malaysia agreeing to boost rubber prices, which fell 43% in 2011 and continued to hit the bottom by mid-2012, Thailand allocated 15 billion baht to purchase 100,000 tonnes of rubber as part of its strategy. The budget for buying rubber from farmers to shore up prices was later increased
Later, in September, it raised spending worth another 30 billion baht to purchase rubber from farmers at above-market rates to shore up prices.
The rubber-buying and exports limiting initiative of the government will end on March 31.
Thailand’s rubber production is expected to increase to 3.6 million tonnes this year, from above 3.5 million tonnes in 2012. (RJA)
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