The National Rubber Policy Committee approved in principle the rubber price guarantee scheme for the 2021-22 season, pledging to spend 10 billion baht for the annual scheme operating for the third consecutive year.
Government spokesman Thanakorn Wangboonkongchana said the scheme will cover 1.8 million families with a combined 17 million rai of rubber plantations.
The rice price guarantee offers compensation if market prices fall below the benchmark.
Under the rubber price guarantee scheme, rubber farmers will be offered a guaranteed maximum price of 60 baht per kilogramme for raw rubber sheet, 57 baht per kg for latex and 23 baht per kg for cup lump, limited to 25 rai per family. Under the scheme, rubber tappers are eligible to receive 40% of the prices, with owners getting 60%.
The scheme will be handled by the state-owned Bank for Agriculture and Agricultural Cooperatives. It will run from October 2021 to September 2022.
The ministry is scheduled to propose the scheme for the cabinet's approval next month.
According to Mr Thanakorn, Prime Minister Prayut Chan-o-cha has also ordered related agencies to help prevent any corruption and ensure that cash should be directly transferred to farmers.
Gen Prayut also ordered related agencies to closely monitor the farm sector from upstream to downstream in a bid to increase value for farm products, support farmers to cut production costs and promote the use of rubber as raw materials in manufacturing.
He also asked responsible agencies to help control the rubber plantation areas to maintain supply and stabilise the rubber prices.
He also authorised the Agriculture and Cooperatives Ministry and the Rubber Authority of Thailand to strictly supervise the registration process to ensure that registered farmers are genuine rubber farmers now the government has set a clear policy to prevent the plantation of rubber in preservation and watershed areas.
The Rubber Authority of Thailand reported as of Sept 15 raw rubber sheet at 48.40 baht per kg and latex at 48.50 baht per kg.