BANGKOK(Commodity Online) : Thailand, world's largest producer and exporter of natural rubber, to invest 15 billion baht ($472 million) in rubber market to boost prices, according to Theera Wongsamut, Minister of Agriculture and Cooperatives.
The price intervention measure will boost prices to THB120 a kilogram (2.2 pounds) from present THB98/kg.
Natural-rubber prices have fallen by about 45% since February 2011 following a series of events including a global economic slowdown, the Japanese earthquake and flooding in Thailand that resulted in lower demand for the commodity.
The 15 billion baht fund will come from the state-owned Bank for Agriculture and Agricultural Cooperatives, with natural-rubber stocks used as the collateral.
In Tokyo Commodity Exchange (TOCOM), rubber for January delivery traded at 274.0 yen per Kg and in National Multi Commodity Exchange (NMCE), the commodity for February traded at Rs 19,747 on Wednesday at 10:30 IST.
