Illustration photo. (Source: Internet))Bangkok (VNA) – Thailand ’s government pledged to help rubber farmers reduce losses caused by tumbling world prices .
The government promised it will buy rubber latex at premium prices after some farmers in the south threatened protests and hunger strikes.
Commenting on the Thai government’s move, the UK Financial Times said the worries about China ’s falling economy have negatively impacted the Southeast Asian region, especially Thailand .
Concerns about China have helped drive world rubber prices to a seven-year low.
Chayo Trangadisaikul, Deputy General Secretary of the Federation of Thai Industries, said the fall in demand for Thai rubber was driven by a slowdown in China ’s car industry and was likely to last a few years or longer.
The aid promised by the Thai government is just easing difficulties for the moment, Chayo said, adding that it’s not a permanent remedy for the rubber problem.
Thailand has historically exported 90 percent of its rubber, half of which goes to China .
From 2010 to 2013, Thai rubber producers expanded their operations during the boom in China ’s motor industry in the review period, which led to high prices for rubber. Currently, the farmers are suffering losses as the price falls.
According to experts, Thai farmers need at least 45 THB (1.24 USD) a kilogramme of rubber to cover production costs.-VNA
