The government plans to buy rubber from farmers at a purchase price not exceeding 45 baht per kg.
The projected price is about 15 baht lower than the set price demanded by groups of rubber farmers who are calling for 60 baht per kg, roughly double current market levels.
On Tuesday the government agreed to buy 100,000 tonnes of all types of rubber products directly from growers at an above-market price in an attempt to ease pressure on rubber farmers.
A source close to a government committee working on the issue said the purchase price will be capped to be between 40-45 baht and the panel is negotiating with rubber growers in the hope of positive feedback.
Pol Maj Gen Kraiboon Suadsong, head of the government's working committee for negotiating with rubber farmers, said buying is expected to begin late this month.
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Pol Maj Gen Kraiboon, also chairman of the Public Warehouse Organisation, said the committee has come up with the figures which will be first reviewed and approved by a steering committee on reforms and reducing disparity in the farm and agricultural sectors.
The official purchase price is expected to be announced Thursday.
Pairote Ruekdee, a rubber farmer in Surat Thani, on Wednesday welcomed the rubber purchase scheme, but warned that the price should not be below 45 baht per kg. He said the latex price picked up from 25 baht to 30 baht per kg at the sign of government intervention.
"Rubber growers find the scheme acceptable. If the government can't buy at 60 baht, at least it can help at 45 baht," he said.
Prime Minister Prayut Chan-o-cha called for unity among rubber farmers to help solve the issue.
Citing delays in the appointment of board members to the Rubber Authority of Thailand, Gen Prayut said discord among rubber farmer groups who could not find common ground caused the delay.
Farmer groups are divided, focused on their own interest, and fail to look at the big picture, he said.
"There should be one rubber association chairman, shouldn't there? There should be one rice association chairman? But there are many of them and they can't reach any consensus. They don't look at the big picture ... and tend to focus on a smaller scale," he said.
He also shrugged off calls for the removal of Agriculture Minister Gen Chatchai Sarikulya, saying the minister was not the problem and was doing his job in line with government policy.
Bangkok governor MR Sukhumbhand Paribatra said he has instructed the Bangkok Metropolitan Administration to support the use of rubber in its project and switch materials to rubber where possible.
"The BMA is ready to support government efforts and plans to buy more than 2,000 tonnes of rubber products at 40 baht per kilo for its projects," he said.
Meanwhile, Pheu Thai member Surapong Tovichakchaikul and red-shirt leader Tida Tawornseth criticised the government's rubber support scheme and called for transparency.
