More domestic consumption urged to solve low rubber prices

BANGKOK, January 12 (TNA) - A senior academic at Bangkok-based University of the Thai Chamber of Commerce (UTCC) has suggested more domestic rubber consumption to solve the problem of low natural rubber prices currently amid a slowdown in the immense Chinese economy. Aat Pisanwanich, Director of UTCC’s International Trade Studies Centre, told journalists on Tuesday that Thailand, a world major producer and exporter of natural rubber, is facing oversupply of rubber because of a slowdown in the Chinese economy. Aat pointed out that China, a world major importer of natural rubber, normally demands more than 3.7 million tonnes of natural rubber annually, while Thailand normally exports natural rubber to China more than 2 million tonnes yearly, or about 30 per cent of the country's total export of natural rubber annually. Aat acknowledged that production costs of Thai rubber growers now stand at about 64 baht a kilogramme on average and the only way to assist local rubber growers facing a plung of rubber prices by about half is the government's move to help reduce their costs. Aat noted that 87 per cent of Thailand's total rubber produce has been exported, while the rest is for domestic consumption; so, it is necessary now to lower natural rubber exports and boost domestic consumption, instead, to solve the problem of oversupply of natural rubber in the country currently. The senior academic's advice coincides with a move by rubber growers in the Thai South who have submitted demands to the government, including an increase in rubber prices, claiming that they are facing an acute loss due to the dwindling rubber prices currently. (TNA)