The cabinet on Tuesday approved an 18-billion-baht subsidy for rubber growers and tappers, to help ease the impact of low rubber prices.
Speaking after the weekly cabinet meeting, Agriculture Minister Grisada Boonrach said over 1.4 million people will benefit from the subsidy programme, about 1 million of whom are rubber plantation owners and the rest rubber-tapping workers.
The cabinet agreed to pay them 1,800 baht each per rai of rubber plantation to a maximum of 15 rai per person, he said.
Only the 1.4 million people who are already registered with the Rubber Authority of Thailand (RAT) and currently work on a plantation located on land with proper title deeds will receive the promised money from Dec 18, said the minister.
The Bank for Agriculture and Agricultural Cooperatives (BAAC) will handle the payment using its own money, he said.
"The RAT will later compensate the BAAC in the fiscal year starting next October," he said.
"The ministry will today announce more measures to help shore up rubber prices and to help rubber growers supplement their income," he added.
Five major rubber exporters have also agreed to cooperate with the government to help the rubber growers by guaranteeing the prices of both rubber milk and cup lump at 37 baht per kilogramme.
The smoked rubber sheet price will be guaranteed at 40 baht per kilogramme.
"The RAT has also agreed to pay a subsidy of 2 baht per kg to rubber exporters of these types of rubber products," said Mr Grisada.
Other measures being considered include providing job training to those growers whose trees are very old and produce low yields so that they can earn money from other jobs, according to the minister.
"A number of furniture-making and car tyre-making companies have also agreed to purchase rubber logs directly from the rubber plantations," he said.
Thailand currently produces 4.6 million tonnes of rubber each year, about 4 million tonnes of which is exported.
Prime Minister Prayut Chan-o-cha insisted that the subsidy programme is intended only as a temporary measure and the government would rather encourage growers to adjust to the changing economic climate.
"If rubber growers' costs rise, then the cost of any products made of rubber will go up as well," he said.