It is heard that Deputy Minister of Agriculture and Cooperatives, Mr. Yukol Limlaemthong announced to destock 220,000 tonnes of natural rubber which were stockpiled during the falling rubber price at 100 baht/kg under the government’s rubber price stabilization scheme. Currently, rubber price stays at 65 baht/kg. If destocking at this price level, the government will encounter deprivation.
The said rubber inventories weigh on domestic prices and burden the stockpiling. In response to the said problem, the Rubber Estate Organization (REO) has authority to destock with or without the cabinet’s approval. Since the current price is not remunerative, the destocking is in vain. If still stockpiling, the government will further be burdened with the high inventory cost. Let us anticipate how the REO will pass the impasse.
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