The cabinet yesterday approved the rubber income guarantee scheme for the 2022-23 season, pledging to spend 7.6 billion baht for the initiative's fourth consecutive year.
According to Nakorn Tangavirapat, governor of the Rubber Authority of Thailand, the scheme will cover 1.6 million rubber farmers with a combined 18.2 million rai of rubber plantation.
Of the total eligible farmers, 1.37 million are plantation owners and tenant farmers, with the remainder being tappers.
The income guarantee scheme for farmers offers compensation if rubber market prices fall below the benchmark.
Farmers are 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. Rubber tappers are eligible to receive 40% of the prices, with owners getting 60%.
"This project aims to help rubber farmers during the fluctuating rubber price period. The government is concerned about farmers and prioritises helping them, which is why it provides this project," said Mr Nakorn.
The previous three phases of the scheme, which cost the government a combined 46.7 billion baht, helped alleviate the impact of economic challenges on rubber farmers, he said.
The fourth phase of the project pays rubber farmers from this month.
In a related development, Mr Nakorn said the cabinet yesterday also approved a project to support revolving funds for rubberwood and product businesses, lasting for two years from the date of approval.
The government will provide compensation for interest rates of up to 3% per year, not exceeding 600 million baht, provided the rubber and rubber product companies purchase rubberwood at prices of at least 1,500 baht per tonne.