Govt agrees to buy rubber at B45 a kilo

Deputy Prime Minister Prawit Wongsuwon yesterday confirmed the government would buy 100,000 tonnes of rubber from struggling farmers at 45 baht/kg.

Speaking yesterday after chairing a committee set up to help farmers suffering from falling rubber prices, Gen Prawit said the panel agreed the government will buy raw rubber sheet at 45 baht/kg directly from farmers, while latex and cup lump will be purchased at lower prices.

At this stage, the government will buy 100,000 tonnes of rubber from growers.

Responding to a reporter’s comment that 100,000 tonnes wasn’t that much, Gen Prawit said if more money was available, the government would agree to buy more.

The Public Warehouse Organisation, the National Council for Peace and Order and the Rubber Authority of Thailand (RAOT) will work together to buy rubber from farmers with the money drawn from the RAOT’s rubber fund, Gen Prawit said.

If more money is needed, funds from the Bank for Agriculture and Agricultural Cooperatives’ coffers will be used.

“Everyone is satisfied with 45 baht/kg. Farmers are okay with that,” Gen Prawit said.

He said the purchased rubber will be used in the domestic market in line with government policy.

He said the deal reached at the meeting will be tabled at the cabinet meeting as a budget must be approved.

Meanwhile, Agriculture and Cooperatives Minister Chatchai Sarikulya said 4.5 billion baht from the RAOT rubber fund will be used to make the purchase, which will start from Jan 25.

The ministry will be responsible for disseminating the rubber to manufacturers and processing firms contracted by state agencies who buy rubber, he said.

Referring to the 1,500 baht per rai subsidy for rubber plantations, he said the payment will be accelerated and completed by this month.

Gen Chatchai dismissed reports he plans to step down after the prime minister chose to assign several agencies to help tackle tumbling rubber prices.

That role would normally be performed by his ministry.