Thailand Approves $218 Million to Guarantee Rubber Farmer Prices
Bangkok, Thailand – Thailand has approved 7.6 billion ($218 million USD) baht for the price guarantee for the 2022-2023 season and the program will cover around 1.6 million rubber farmers with a combined 18.2 million rai of rubber plantations.
Around 1.6 million registered rubber farmers will be able to sell raw rubber at a guaranteed price for the 2022-2023 season, after an assistance program was approved by the Thai Cabinet.
The initiative offers compensation if rubber market prices fall below the benchmark. Farmers are guaranteed a maximum price of 60 baht per kg for raw rubber sheets, 57 baht per kg for latex, and 23 baht per kg for cup lump, with a maximum of 25 rai per family.
The program is managed by the state-owned Bank for Agriculture and Agricultural Cooperatives. According to officials, the initiative is the fourth stage of an ongoing program and provides for a 40-60 split of earnings between rubber tappers and plantation owners.
Prime Minister Gen Prayut Chan-o-cha said addressing decreasing crop prices is still a top concern, as officials are working to find the best solution to alleviate financial problems for farmers around the country. He also noted that the government has spent 30% of the national budget to deal with falling crop prices and will strive to do more to address the issue.