BANGKOK (Commodity Online ) : World’s largest natural rubber producer, Thailand said it want the price of the commodity to be above 80 baht.

Speaking to reporters here Thai Deputy Prime Minister Suthep Thaugsuban said several measures were being undertaken to shore up the price, including working closely with Malaysia and Indonesia, two other major producers.

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Thailand government has allocated eight billion baht to the Rubber Planting Aid Fund to hold a stockpile of up to 2,000 tonnes to stabilise the price and help the industry.

Thai officials expected the price to increase to 80 baht by end-October. The price was traded between 71.85 baht and 74.05 baht on Tuesday.

In April, Thailand, Indonesia and Malaysia, grouped under the International Rubber Consortium, agreed to reduce exports by 48,000 tones per month in the second quarter of the year to prop up the prices.

In 2008, the three countries account for 70 per cent of the global production of rubber and exported 5.9 million tones.

According to the Association of Natural Rubber Producing Countries, Thailand's production fell 6.1 percent during the January-July period, while Indonesia's declined 6.3 percent.