Government officials are hoping rubber prices will soon rebound after Thailand’s agriculture minister met with his counterpart from Malaysia Monday. The ministers from both major rubber-producing countries discussed cooperative measures they can take to reverse plummeting prices. A tripartite meeting that includes senior representatives from Indonesia is expected in the next three weeks in Kuala Lumpur. The meeting, which will also be attended by small-producers including Laos, Vietnam and Cambodia, will set the direction for short- and long-term policies.

Agriculture and Co-operatives Minister Pitipong Phuengboon Na Ayudhaya said the Department of Agriculture and International Rubber Consortium Ltd were instructed to gather information and data for the meeting. He said the main factor pushing down prices is oversupply. Thailand's government already has proposed reducing production by cutting down old trees and increasing domestic demand for rubber as methods to reduce stockpiles. Mr Pitipong met with Dato' Sri Douglas Uggah Embas, minister of Plantation Industries and Commodities. Prices of raw rubber sheets were at 43.5 baht per kilogramme on Friday, less than a quarter the peak price of 181.9 baht on Feb 17, 2011. The low prices have put pressure both on the government and individual growers.

Two farmers recently committed suicide and local media attributed their deaths to plummeting rubber prices. Mr Pitipong said existing government measures to aid rubber planters might not sufficient so the government will try to draft additional policies. He declined to disclose any details about those plans, however.

Source: Bangkok Post