Thailand, the world's biggest rubber producer, will expand a state-buying programme by more than doubling purchases from farmers to support prices, according to Deputy Agriculture and Cooperatives Minister Yuttapong Charasathien.
The government will purchase a further 250,000 metric tonnes by March after buying 170,000 tonnes since May, Mr Yuttapong said in an interview in Bangkok on Wednesday. The country will also proceed with plans agreed with Indonesia and Malaysia in August to cut its shipments by 150,000 tonnes, he said.
Rubber in Tokyo has entered a bull market, rebounding from a near three-year low in August, after the three countries agreed to cut exports by a combined 300,000 tonnes. The rally, also driven by prospects for increased demand as China and the United States recover, may raise farmers’ incomes, while lifting costs for tyre makers such as Tokyo-based Bridgestone Corp.
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