BANGKOK, 17 October 2014 The rubber policy committee has resolved to pay out assistance money to rubber tree growers in the same manner as for rice growers, in addition to using 10 billion baht to buy raw rubber sheets from growers in a bid to prop up the domestic price.
Deputy Prime Minister M.R. Pridiyathorn Devakula said on Thursday the rubber policy committee expects the rubber price in the global market to increase due to the decline in inventory, which is expected to fall to 2.3-2.5 million tons. The government will take advantage of this opportunity to push up the domestic price of rubber. The Rubber Estate Organization will buy raw rubber sheets from the growers and from the market. The Bank for Agriculture and Agricultural Cooperatives will set aside 10 billion baht to buy rubber sheets from rubber growers to resell to the government. As for fresh latex, six banks will be asked to set aside 10 billion baht to buy the latex to make into concentrated latex.
Small-scale rubber tree growers will receive 1,000 baht per rai of aid money, although the ceiling is capped at 15,000 baht per household in the same way as aid for rice growers. The aid handout is expected to require a budget of 8.5 billion baht, and money is expected to reach the rubber tree growers starting from October 20 onward.
For the long-term measure, 5% interest loans will be provided to small-scale growers, who will each be eligible for no more than 100,000 baht. The government will shoulder more than half of the loan interest, in a bid to encourage the growers to make improvements to their rubber plantations.
