Thailand doubles rubber subsidy, farmers yet to cancel weekend – AP, September 10, 2013
…After the drop in prices last year, the government spent 22 billion baht buying rubber from October 2012 to May 2013 and built up stocks of 210,000 metric tons of rubber sheet without making much impression on global prices.
That $690-million rubber subsidy program was axed after criticism it was costly and distorted the market. Similarly, a government rice intervention scheme has come under intense scrutiny after incurring losses of at least $4.46 billion since it was introduced in 2011.
Thailand has tried to enlist Indonesia and Malaysia, the next biggest exporters, in restricting shipments but has not had much success. Demand from companies in China and from tire makers has proved to be a bigger factor in setting prices…
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