Thai rubber intervention plan started in March
and the cabinet had allocated the ministry a 15 billion-baht budget to buy
rubber from cooperatives and community businesses at 100 baht a kg for raw
rubber sheet and 104 baht/kg for smoked rubber sheet.
According to Damrongsak Phrammanee, head of a
government centre that buys rubber in Nakae district of Thailand, rubber traders
in the northeastern province are using fraudulent methods to cheat the
government’s 15 billion baht rubber price intervention scheme. The programme
aimed at halting the decline in rubber prices, had to temporarily stop
purchasing rubber after it found that traders were posing as farmers to sell
their products to the centre. Traders take advantage by buying rubber products
at lower prices from the farmers who are badly in need of cash and were willing
to sell their crops at lower prices and finally traders selling the same to government
at the higher prices guaranteed by the scheme.
Economic fundamentals are sluggish but news
from ECB and China favourably improved market sentiment, futures also advanced
on speculation that Chinese buyers will build up stockpiles ahead of
national holidays in early October.
Read
lot more in Rubber4U – 1st October 2012 issue
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