Bangkok: The Minister of Agriculture has announced a significant rise in rubber prices after the Rubber Authority of Thailand (RAOT) and the Rubber Farmers Network Committee decided to delay the rubber tapping season by one month. This strategic move has reduced supply, influenced market dynamics, and driven up the price of all rubber types.
According to Thai News Agency, Assoc. Prof. Dr. Narumon Pinyosinwat, the Minister of Agriculture and Cooperatives, reported that the current prices for rubber have seen a noticeable increase. Smoked rubber sheet grade 3 is now priced at 70 baht per kilogram, good quality raw rubber sheet at 68 baht per kilogram, fresh latex at 58.75 baht per kilogram, cup lump rubber (DRC 100%) at 58 baht per kilogram, and cup lump rubber (DRC 70%) at 40.60 baht per kilogram.
The decision to postpone tapping from May to June 2025 is expected to remove approximately 300,000 tons of rubber from the global market, a shortfall valued at over 14,400 million baht. This supply reduction has triggered concerns regarding future availability, prompting traders with existing purchase orders to hastily acquire rubber, thus revitalizing the global market.
In response to the situation, the Ministry of Agriculture is actively working to address the rubber price issue to ease the hardships faced by farmers. During this postponement period, farmers are encouraged to maintain their rubber trees in preparation for the upcoming tapping season. The RAOT will offer short-term loans through agricultural institutions, capped at 5 million baht per contract, with a four-month interest-free period commencing in May.
Additionally, the RAOT has implemented measures to assist rubber buyers by offering a 3 percent interest compensation under specific project conditions. The authority is also planning to acquire a tire manufacturing plant to support farmer products, remove excess products from the market, enhance rubber product quality, promote the RAOT's rubber brand, and increase domestic rubber usage.