# Thai Rubber Prices Reach 7-Year High

- Link: https://www.thailand-business-news.com/markets/commodities/131555-thai-rubber-prices-reach-7-year-high
- Published: 2024-03-18T10:50:59+07:00
- Author: Zaw Win Maung

Thailand has reported a significant surge in local rubber prices, reaching 90 THB
per kilogram, the highest in seven years.

 * Thai rubber prices have reached a 7-year high at 90 THB per kilogram, attributed
   to increasing global demand.
 * The government aims to enhance rubber productivity through precision agriculture
   and boosting exports to Malaysia.
 * Measures are being taken to prevent illicit rubber from entering the country,
   signaling potential for further increases in rubber prices.

Prime Minister Srettha Thavisin expressed his optimism about this positive development
during his official visit to Germany, emphasizing the potential for continuous rise
of Thai rubber prices due to increasing global demand and the importance of enhancing
productivity through precision agriculture and boosting exports.

### Related**Posts**

###  󠀁[Asian stocks retreat as oil rises above $100 and investors reassess global rate risks](https://www.thailand-business-news.com/markets/333019-asian-stocks-retreat-as-oil-rises-above-100-and-investors-reassess-global-rate-risks)󠁿

###  󠀁[Asian markets hold up despite bond rout as US yields enter a structurally higher regime](https://www.thailand-business-news.com/markets/332037-asian-markets-hold-up-despite-bond-rout-as-us-yields-enter-a-structurally-higher-regime)󠁿

###  󠀁[Local Influences and Return Chasing: Entering a New Era in Emerging Equity Markets](https://www.thailand-business-news.com/markets/329573-local-influences-and-return-chasing-entering-a-new-era-in-emerging-equity-markets)󠁿

###  󠀁[Thailand faces a fresh LNG squeeze as Hormuz crisis pushes prices toward US$28/MMBtu](https://www.thailand-business-news.com/markets/commodities/330458-thailand-faces-a-fresh-lng-squeeze-as-hormuz-crisis-pushes-prices-toward-us28-mmbtu)󠁿

ADVERTISEMENT

The rubber industry plays a significant role in the **Thai economy**, contributing
to both employment and export revenue. Here are some ways in which it impacts the
country:

 1. **Employment**: The rubber sector provides jobs for a substantial number of people
    in Thailand. From rubber plantations to processing factories, there is a wide range
    of employment opportunities. This includes jobs related to tapping rubber trees,
    processing latex, manufacturing rubber products, and logistics.
 2. **Export Revenue**: Rubber is one of Thailand’s major export commodities. The country
    exports natural rubber, rubber sheets, and rubber products to various international
    markets. These exports generate foreign exchange and contribute to Thailand’s overall
    economic growth.
 3. **Foreign Exchange Reserves**: The revenue from rubber exports helps maintain foreign
    exchange reserves, which are crucial for stabilizing the Thai baht and supporting
    international trade.
 4. **Rural Livelihoods**: Many rubber plantations are located in rural areas, providing
    income and livelihoods for local communities. The industry supports farmers and
    their families, contributing to rural development.
 5. **Downstream Industries**: Beyond raw rubber exports, Thailand has a thriving downstream
    rubber industry. This includes the production of tires, gloves, footwear, automotive
    parts, and other rubber-based products. These downstream industries create additional
    jobs and contribute to economic diversification.

## Greater Control Over Rubber Trade

Prime Minister Srettha Thavisin is reluctant for Thailand to only be a transit country
for rubber trade and emphasized the government’s efforts to prevent illicit rubber
from entering the country. He mentioned a recent incident with over 100 trucks carrying
rubber intended for Myanmar, which was not permitted due to uncertainties about 
their actual destination. Srettha stressed the need for a strong government sector
to control the rubber trade and take advantage of the potential for higher rubber
prices.