The Ministry of Agriculture revealed that the auction of 18,000 tons of stockpiled rubber pushed prices past 1.2 billion baht, 34.82% above the base price. The proceeds will be used to repay BAAC debts. The ministry assured transparency and stated the auction will not impact market mechanisms.
Mr. Sarawut Nueangjamnong, Secretary to the Minister of Agriculture and Cooperatives, disclosed the results of the auction for 18,481.93 tons of government stockpiled rubber. Minister Surya Jungroongruangkit instructed the Rubber Authority of Thailand (RAOT) to expedite auctioning old stockpiled rubber, as prices are high and market supply is low. This quantity represents only 4.3% of total monthly production, so it will not cause oversupply or disrupt market prices.
Additionally, it was emphasized that the auction process be open and transparent, with rubber stored in separate warehouses auctioned individually. This approach created broad competition, driving the rubber price to 1,232.2 million baht, setting a record by surpassing the initial base price by 34.82%, equivalent to 318,250,775 baht, far exceeding expectations.
Mr. Sarawut added that the private sector in the rubber industry showed keen interest and actively competed because the base price was attractive. Moreover, the auction helped ease supply tension without negatively affecting prices, contributing to market stability and preparing for future market fluctuations.
The revenue from this rubber auction will be used to repay BAAC debts and cover warehouse rental fees without relying on government budget allocations. The public is assured that RAOT’s operations during this period will be conducted correctly, transparently, and with full openness.
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