Private sector says govt should not intervene rubber market


BANGKOK, 7 September 2013 The Thai Rubber Association does not believe the government should intervene the rubber market, while confirming that prices of rubber have passed the lowest point. 

Prime Minister Yingluck Shinawatra has met with both government agencies and the private sector, including the Thai Rubber Association, Bridgestone, and Michelin, to discuss the current rubber situation.

During the meeting, Dr. Luckchai Kittipol, President of the Thai Rubber Association, told Miss Yingluck that the prices of rubber have already passed the lowest point, coupled with China’s decision to import Thai rubber, he said the current protests by the rubber farmers do not make any sense. He indicated that the current rubber price is considered high already, given that there is an ample supply of rubber in the market, and when compare to 2008, he said the rubber sold back then was at the same rate as the current price.

The president said he disagreed with the government to intervene the rubber market, because it would make the farmers want to sell their rubber at a high price all the time, adding that when the price drops, these protests will rise again in the future.