Thai government propping up rubber prices with US$183 milion of support

The Thai government is buying rubber from the market via a 6 billion baht (US$183 million) buffer fund to support prices. According to a Reuters report, a private fund has also been set up to support domestic rubber futures.

Deputy Agriculture Minister Amnuay Patisse was quoted as saying: “The government is using 6 billion baht from a buffer fund to buy all types of rubber. We are now buying about 1,000 tons a day. Next week, we will start buying around 3,000 tons a day.”

A total of 20 billion baht ($609 million) is available to the Rubber Estate Organization, with the first 6 billion baht being part of that.

There are also reports of an additional 420 million baht ($12.7 million) fund being set up by the government and seven private companies. This is designed to shore up prices of rubber futures, Amnuay is quoted as saying.

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