Private firms confirm deal to build roads
Seven private companies confirmed yesterday that they will buy latex to be used in road construction as part of measures to address low rubber prices.
Department of Rural Roads (DRR) director-general Pisak Jitviriyavasin said the DRR and the Department of Highways (DOH) would purchase 20,000 tonnes of latex at 45 baht/kg from rubber growers and would resell the inventory to the eight firms at the same price.
The latex will be processed into concentrated latex before it is handed over to the companies which will use it as a mixer in producing para asphalt and para slurry seal, specific types of rubber for road construction, he said.
Details on the latex processing and handover will be summarised at a cabinet meeting on Tuesday.
Mr Pisak was speaking after a meeting with representatives from t he seven companies.
He said the firms were willing to buy latex in response to government measures to shore up the price of rubber.
The purchased rubber will be used in road maintenance nationwide this year.
“The companies are willing to purchase rubber from farmers although it will result in a 12% increase in their production costs,” he said.
Mr Pisak, however, insisted the higher production cost will not affect the government’s budget for road construction.
The seven companies are Tipco Asphalt’s Phitsanulok and Nakhon Ratchasima branches, Thai Bitumen, Raycol Asphalt, Solar Asphalt, Asian Asphalt, Shell and Seco Asphalt.
Meanwhile, about 3,000 l ocations to buy rubber from farmers will be set up nationwide.
Agriculture and Cooperatives Ministry spokesman Surapol Charuphong said 2,000 locations to purchase rubber will be established in the South and 1,000 locations in the northern and northeastern provinces.
Mr Surapol said each farmer will be given a quota of up to 150 kilogrammes of rubber to sell to the government.
The purchase programme will be launched by Jan 25, said Mr Surapol.
Aside from buying rubber, he said the ministry is rolling out more than 15 measures, both short-term and long-term solutions, to address the slide in the price of rubber.