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Thai cabinet approves 567 mln USD to assist rubber growers

Source: Xinhua| 2018-11-20 21:58:12|Editor: Shi Yinglun
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BANGKOK, Nov. 20 (Xinhua) -- The Thai cabinet on Tuesday approved a new subsidy worth 567 million U.S. dollars to help rubber farmers who are struggling in the midst of price slump.

Thailand, the world's largest rubber producer, has been hit by a 40-percent drop in prices over the past two years as a result of low demand from world markets.

The government's measure will take effect in January 2019 and will include a direct subsidy of 1,100 baht (33 U.S. dollars) per 0.16 hectare capped at 500 U.S. dollars for small rubber farmers who run rubber plantations and are registered with the Rubber Authority of Thailand.

Rubber tappers who work on registered farms but do not own the land will receive a handout of 21 U.S. dollars per 0.16 hectare of land, capped at 318 U.S. dollars.

The Ministry of Agriculture and Cooperatives told Thai media that the measure will provide relief to about 1 million farmers and 300,000 rubber tappers.

Rubber farmers have already received some government subsidies; however the measure approved at Cabinet on Tuesday will replace all previous subsidies currently received by rubber farmers and tappers.

The Thai government is also encouraging rubber growers to switch to alternative crops such as maize and corn during the slump in rubber prices.

The Rubber Authority of Thailand (RAT) and the Electricity Generating Authority of Thailand are conducting experiments on how to turn rubber into energy.

RAT is also proposing that rubber-based bedding be manufactured for state schools and hospitals.

Thai benchmark RSS3 rubber grade was quoted at 1.35 U.S. dollars per kg on Tuesday.

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