InfoQuest (June 07, 2019) -- Mr. Krisada Boonrach, Minister of Agriculture and Cooperatives, announces that the rubber price (RSS 3) is on the rise (as of June 4, 2019). Currently, the average price of RSS 3has increased to 55.89 baht per kg from 42.91 bahtin October 2018. This rise can be mainly attributed to practical measures taken by the government, such as promoting deep processing of rubber, facilitating the application of domestic rubber in rubber gloves, shoes, bedding, conveyor belts, rail pads, rubber pipes, transportation equipment, stadium floor, playgrounds and sidewalks to avoid excessive dependence on exports, as well as formulating tax reduction measures for rubber products and incentive measures to attract Thai and foreign companies to invest in rubber processing plants for the Eastern Economic Corridor project.
In addition, the Ministry of Agriculture and Cooperatives (MOAC) has formulated medium- and long-term measures to increase the proportion of domestic rubber consumption, including one kilometer of rubber-mixed road for every village. This project will transform the original dirt roads into dust-free rubber-mixed roads with a total length of 300,000 kilometers. Each place will gradually transform 50,000-kilometer dirt roads into rubber-mixed roads every year. Since one kilometer of road will use 1.3 tons of rubber, it is estimated that the annual rubber consumption of this project will be not less than 10,000 tons. In addition, local governments plan to use rubber for stadium construction.
MOAC has also implemented measures to reduce rubber-growing areas with a long history and low yields. The goal is to reduce 500,000 rai (or 800 square kilometers) of rubber-growing areas per year and guarantee that the ational rubber production will not exceed 4 million tons with an aim to maintain the balance between supply and demand and stabilize prices.
Source: InfoQuest, by Nisarat Wichiensri / Rachada, translated by Xinhua Silk Road
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