The government has approved a 7.64-billion-baht income guarantee scheme for rubber farmers for the 2022-23 season, which is operating for the fourth consecutive year.
Nakorn Tangavirapat, governor of the Rubber Authority of Thailand, said the scheme was endorsed on Wednesday at a meeting of the National Rubber Policy Committee, chaired by Prime Minister Prayut Chan-o-cha.
The scheme covers 1.60 million rubber farmers with a combined 18.2 million rai of rubber plantations. Of the total, plantation owners and tenant farmers account for 1.37 million people, with 231,514 rubber 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%.
The scheme is handled by the state-owned Bank for Agriculture and Agricultural Cooperatives. The Commerce Ministry is expected to propose the scheme for cabinet approval as soon as possible.
In a related development, Gen Prayut instructed the committee to study strategic development plans for all rubber products, especially rubber production, processing and distribution. He also urged rubber producers to brace for trade measures as there are several in global markets that may negatively affect rubber exports.
In addition, Gen Prayut said baht movement is difficult to manage because external factors affect the currency.
