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 Vithaya Ngarnthawee, managing director of World Rubber Wood System Co Ltd, said both markets are the top buyers of processed parawood and parawood furniture from Thailand.

 He said to combat the declining demand, Thai manufacturers need to create innovative products for multi-purpose functions. His company has recently introduced parawood for home building, under "Worldbest" brand. 

 

 

Meanwhile, Manus Supacheewakul, secretary of the parawood business club in Hat Yai, Songkhla, said that China has also delayed the imports of parawood furniture and this forces manufacturers in the South to cut production capacity. Some have temporarily ceased operations.

 He noted that the manufacturers are also facing raw material shortage as farmers are still reluctant to cut down rubber trees despite the falling rubber prices. Meanwhile, the violence in the three Southern provinces makes it impossible for raw material transportation.

 "Members of the club operating in the Southern provinces have to cut production and some small players have shut down business. Farmers still don't want to cut down their rubber trees, expecting that the rubber prices would return to the peak," he said.

 Thailand has the capacity to produce 3 million cubic metres of parawood per annum, based on the 300,000 rai plantation area. However, domestic demand is only 1.2 million cubic metres.

 Manus urged for the government to lend help to the industry.