Monthly Rubber Situation in Thailand - June 2014

Currently, RSS3 price stays at 60 Baht per kilogram and sometime increases slightly to 36 Baht per kilogram. This price level is considered very low when compare to over 100 Baht/kg level in the past. However, it can be expected that prices would climb up to over 100 Baht per kilogram again. But when is beyond expectation. It is very hard to expect since rubber prices involve various factors to analyze and closely follow.

Referring to a news article released on 17 June 2014, National Council for Peace and Order (NCPO) approved a cultivation subsidy scheme for rubber growers, which has been implemented but now wholly successful. Another budget of 6,600 million Baht was recently injected to continue the scheme.  Another strategy to improve falling rubber prices is the reduction of production cost, which can be carried out by rubber growers. While global prices are driven by demand-supply factors, which are uncontrollable. If rubber growers can manage to reduce cost of production with a subsidization of the government, they can survive in falling price situation.