Thailand, the world’s top supplier of natural rubber, is said to buy 250,000 metric tonnes of rubber by March to boost the natural rubber market.
According to deputy farm minister Yuttapong Charasathien, the Thai government has already bought 170,000 metric tonnes of natural rubber from local rubber farmers since May this year.
About 420,000 metric tonnes of natural rubber represents an approximate 12% of the US3.57 million of natural rubber that the country has produced last year.
The purchases were done using the funds from the government worth Baht 30 billion (US$967 million) that was approved last September, which was initially allotted for buying 300,000 metric tonnes of natural rubber.
Thereafter, a second funding worth Baht 15 million has been approved by the Thai cabinet to buy additional 100,000 metric tonnes of rubber.
The government’s strategy is in line with its membership in the International Tripartite Rubber Council, which is comprised of the other two leading rubber producers, Indonesia and Malaysia. The council has agreed to cut exports by 300,000 metric tonnes until end of March 2013 to improve the price of rubber in the global rubber market. (RJA)