Direct rubber purchase is just short-term solution –  Somkid says

Deputy Premier Somkid Jatusripitak made clear yesterday that the purchase of rubber from farmers is only a short-term solution.

He said for the long-term solution, more proposals should be presented on increasing rubber usage, as well as on the processing of raw rubbers and the setting up of more rubber-related factories in the country.

Mr Somkid said the Board of Investments (BOI) would be tasked to come up with new measures to persuade more investments in the provincial rubber industry.

Meanwhile Interior Minister Gen Anupong Paojinda said that the ministry would  be allocating a budget from the ministry to  purchase rubber but further details are needed to be discussed before this could be carried out.

Primarily, he said the ministry would purchase materials which are made from rubber, such as rubber mats used in playgrounds and materials needed for the construction of pavilions.

He said he would also instructed Local Administration Organisations to use these materials as well.

At the same time, the Ministry of Finance has held talks with the Industry Ministry and public financial institutions on how rubber could be processed to add value.

The ministry has already approved that the Bank for Agriculture and Agricultural Cooperatives (BAAC) and the Government Savings Bank (GSB) to provide a loan of 4.5 billion baht to the Public Warehouse Organisation (PWO) and the Rubber Authority of Thailand for the purchase of 100,000 tonnes of rubber from farmers.

Four state-owned banks were also advised to lend low interest loans to the private companies which have contracts with the government, while supporting other financial institutions to consider lending soft loans to private businesses, so as to pave way for these companies to be able to purchase more rubbers into their stocks.