As the price of rubber continues to fall, the Thai Prime Minister, Prayut Chan-o-cha has signed an agreement on the use of natural rubber in road construction around the Kingdom. PM Prayut presided over the signing ceremony of the agreement in efforts to help support the country’s financially struggling rubber farmers.
This year in Thailand, the Economic Intelligence Center has predicted a bleak future for rubber prices. Particularly because of tense Chinese demand and increased domestic supply.
Thailand traditionally relies on its rubber consumption by China, with 40% of its exports destined for the second-largest economy in the world. Thai rubber is mainly exported to make car tires.
PM Prayut took this opportunity to commend the Transport Ministry and the Minister of Agriculture and Cooperative Affairs, the University of Prince Songkla, the Thailand Institute of Technological and Scientific Research, the Rubber Plantation Cooperative Fund and also the Engineering Institute of Thailand under Royal Patronage, in developing a rubber road paving method together.
Rubber will also contribute to reducing road accidents
The plan will also further enhance the safety of Thailand ‘s roads. The achievement is mainly the result of government studies on road accidents and deaths. In addition to its added benefit of helping the rubber growers of the country.
The Ministry of Transport will also cover natural rubber over concrete barricades. The system is accredited by the Scientific and Technical Research Institute. It has been tested in South Korea to reduce the harmful effects of road accidents.
According to the National News Bureau of Thailand (NNT), the coverage process is planned to begin between 2020 to 2022. Covering 12,282 kilometres using 1,063,651 rubber trees, or around 1 million tons of rubber sap, representing 71% or just over 30 billion baht farmers’ profits.
Rubber has made significant contributions to the global economy for decades. Many countries, especially within ASEAN, also actively contribute to the supply of natural rubber to the world.
Natural rubber is the most demanded resource in the automotive sector, primarily for tires. As a result, almost 70% of the global demand for natural rubber comes from the tire manufacturing industry.
Moreover, now there seems to be a potentially large demand for natural rubber on the world market for road construction. Many now believe that natural rubber usage on roads has a real potential to affect the world’s natural rubber market
SOURCE: Chiang Rai TimesStay updated with Samui Times by following us on Facebook.
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