Thailand may buy 300,000 tonne rubber to lift prices

BANGKOK: Thailand, the world's biggest natural rubber producer, will spend 30 billion baht ($966 million) to buy the commodity from farmers at above-market rates to stem a decline in prices.

The national rubber policy committee on Thursday approved the spending to purchase at least 300,000 tonne, Nattawut Saikuar, deputy farm minister, told reporters in Bangkok. The government, through state-owned banks, will also provide 15 billion baht to exporters at low interest rates, he said. Thailand has spent about 15 billion baht already, buying around 100,000 tonne, he said.

Rubber futures have rebounded 16% from their lowest levels in almost three years on August 14 after Thailand, Indonesia and Malaysia, representing about 70% of global supplies, announced a cut in exports last month.