State-owned banks have pledged to provide 2 billion baht in loans to support rubber farmers to rubber processing companies, as rubber export is expected to grow by 5 percent for this year.
A Memorandum of Cooperation has been signed between nine agencies to support the rubber industry at the Ministry of Finance on May 31. The signatories included the Thai Chamber of Commerce, Krungthai Bank, the Bank for Agriculture and Agricultural Cooperatives, the Thai Credit Guarantee Corporation, and the Export-Import Bank of Thailand.
Under the memorandum, the nine financial institutions will assist all stakeholders in the rubber industry by facilitating loans and providing comprehensive information to enhance business opportunities and explore new export markets. It also aims to improve the quality of life for rubber farmers and ensure that rubber product manufacturers adhere to the principles of the Bio-Circular-Green Economy model.
Finance Minister Arkhom Termpittayapaisith stated that the loans would support the industry at various stages, from rubber farmers to latex processing plants to factories producing rubber products. The memorandum aims to provide businesses with access to information and value-added opportunities for their rubber products, enabling Thailand to compete sustainably in global markets.
Rubber exports currently total 680 billion baht per year, supporting nearly 6 million people employed in rubber production across 18 million rai of land. The Thai National Shippers’ Council (TNSC) has predicted a 5-percent growth in rubber exports, despite exports of other goods being expected to contract this year. (NNT)