Bangkok: The Rubber Authority of Thailand (RAOT) auctioned off over 18,000 tons of rubber from warehouses, emphasizing that it will not affect market prices.
According to Thai News Agency, the RAOT sold more than 18,481 tons of rubber from two rubber price stabilization projects, valuing it at 1,232 million baht. This price was 34.82 percent higher than the opening bid. RAOT confirmed that this sale of rubber will not affect market prices, as it represents only 4.3 percent of the expected rubber production in June.
Mr. Yanakit Harudeen, Deputy Governor for Business of RAOT, revealed that the organization sold 18,481.93 tons of rubber from the Farmer Institution Capacity Building Project and the Buffer Stock Project to stabilize rubber prices through auctions. The initial bid price totaled 913.95 million baht, closing at 1,232.2 million baht, an increase of 318.25 million baht or 34.82% from the opening price. The auction involved four warehouses located in Songkhla and Chonburi provinces, where rubber industry operators won the bids for each warehouse.
Mr. Yanakit noted that RAOT carefully considered the timing and quantity of rubber sales, comparing them to the expected rubber production of 418,478 tons in June 2026. He found that the rubber to be sold represents only 4.3% of the total production, thus maintaining a level that would not cause a surplus or put downward pressure on rubber prices. Furthermore, the rainy season naturally reduces rubber production entering the market. Therefore, releasing rubber from stock at this time helps to balance the supply and mitigate market fluctuations to some extent.
The proceeds from this rubber sale will be used to repay debts to the Bank for Agriculture and Agricultural Cooperatives (BAAC) and to pay warehouse rental fees for storing rubber, thereby reducing the government's expenditure burden. RAOT stated that the auction was conducted according to established criteria, was transparent, and is verifiable.