Bt5bn loan planned for rubber industry
The Bank for Agriculture and Agricultural Cooperatives (BAAC) is extending loans worth Bt5 billion to financially support rubber processing.
Krungthep Turakij TV on Sunday quoted Executive vice-president Supat Eaucha as saying that the laons will be extended to rubber cooperatives or community enterprises interested to erect rubber smoke houses or small plants to produce rubber plates or block rubber.
He said that this would help farmers to store rubber for release in high-price period.
Initially, farmers will be entitled to the interest rate of only 2 per cent per annum, while the government will shoulder another 3 per cent. The terms and conditions should be completed within early October.
Rubber farmers, disgruntled over the falling price of raw rubber, are now demanding for price intervention.
An industry source earlier said that less than 10 per cent of rubber produced in Thailand is turned to value-added products.