The agriculture ministry will propose up to 26 billion baht in subsidies for rubber farmers in a bid to boost their income.
Agriculture Minister Chalermchai Sri-on said on Monday the subsidies, which may be considered by the cabinet next week, would benefit about 1.4 million farmers and nearly 300,000 rubber tappers between October and September next year.
The government would set floor prices for some rubber products, including unsmoked sheets, latex and cup lumps, and farmers would be paid the price difference, he said.
The new guaranteed prices were about 50% above current market prices, according to a Reuters calculation.
Domestic rubber prices in the world's largest producer have suffered in recent months due to a slowing global demand for the commodity, despite export curbs aimed at buoying prices that will end in mid-September.