Bangkok: Minister Narumon has announced a collaboration between the Rubber Authority of Thailand (RAOT) and a network of rubber farmers to postpone rubber tapping for one month, which has led to a significant increase in rubber prices, creating a lively market environment.
According to Thai News Agency, Assoc. Prof. Dr. Narumon Pinyosinwat, Minister of Agriculture and Cooperatives and leader of the Kla Tham Party, explained that rubber prices have been continuously rising. On May 2, the price of smoked rubber sheet grade 3 increased by 70 baht per kilogram, good quality raw rubber sheet by 68 baht per kilogram, fresh latex by 58.75 baht per kilogram, cup lump rubber (DRC 100%) by 58 baht per kilogram, and cup lump rubber (DRC 70%) by 40.60 baht per kilogram.
The collaboration between RAOT and the Network Committee involves delaying the rubber tapping season by one month, from May to June 2025. This postponement will remove no less than 300,000 tons of rubber from the global market, potentially valued at over 14.4 billion baht. The decrease in supply is pressuring market balance, leading to concerns over future shortages. Consequently, traders are rushing to secure their orders, invigorating the rubber market.
Assoc. Prof. Dr. Narumon emphasized the Ministry's commitment to addressing the rubber price issue to ease farmers' challenges promptly. During the tapping postponement, farmers are encouraged to maintain their trees to ensure they are ready for harvest. RAOT will support farmers with a short-term loan project, offering up to 5 million baht per institution without interest for four months, starting in May.
Furthermore, RAOT will aid rubber business operators by providing a 3 percent interest rate compensation, contingent on their participation in a project to purchase a tire manufacturing plant. This initiative aims to pull rubber products from the market, enhance product quality, create business opportunities, and promote domestic rubber usage.