Bangkok: The government has successfully sold over 18,000 tons of rubber from its stockpiles, generating 1,232 million baht and surpassing the initial auction price by more than 318 million baht. The sale, representing only 4.3 percent of monthly production, is not expected to impact market prices and aims to maintain stable income for rubber farmers.
According to Thai News Agency, Lieutenant Colonel Patthadarasmi Thongslueykorn, Deputy Spokesperson for the Prime Minister's Office, stated that the sale was conducted under the policy of Mr. Suriya Jungrungruangkit, Minister of Agriculture and Cooperatives, who directed the Rubber Authority of Thailand (RAOT) to expedite the sale during a period of high rubber prices and limited market supply. The initiative involved selling 18,481.93 tons of rubber from the Farmer Institution Capacity Building Project and the Buffer Stock Project, totaling 1,232.2 million baht in sales, which exceeded the opening auction price by 34.82 percent.
The deputy spokesperson also highlighted that Mr. Sarawut Nueangchamnong, the secretary to the Minister of Agriculture and Cooperatives, emphasized the timely execution of the rubber sale. This sale corresponds to only a fraction of the projected June 2026 rubber production, estimated at 418,478 tons, ensuring it does not disturb the domestic rubber price mechanism.
The auction saw keen participation from the private sector, with RAOT organizing separate auctions for four warehouses based on their locations: Thungsong Si Sawat Warehouse, Wanchai Star 1 Warehouse, Wanchai Star 5 Warehouse in Songkhla Province, and C and T Modular Warehouse in Chonburi Province. This strategy fostered price competition and resulted in higher-than-anticipated financial returns for the government.
Additionally, the rainy season has led to reduced rubber production, and the potential advent of a Super El Ni±o phenomenon later in the year could further limit supply. Consequently, releasing government stockpiles at this juncture helps ease supply constraints, support market balance, and stabilize prices, ultimately benefiting rubber farmers.
Captain Patthadarasmi mentioned that the auction proceeds will be allocated to repay debts to the Bank for Agriculture and Agricultural Cooperatives (BAAC) and cover warehouse rental costs, eliminating the need for additional government funding. This demonstrates effective state asset management grounded in fairness, transparency, and openness while ensuring market stability and income security for Thai rubber farmers.