Thailand plans to sign deal next month with state-owned Sinochem Group to supply 200,000 tonnes for 1 year, Minister of Agriculture and Cooperatives Chatchai Sarikulya says in interview on Wednesday in Bangkok.
* Thailand seeking to reduce rubber surplus through sales to China: Chatchai
* NOTE: Separately, country already has 2 deals totaling 408,000 tonnes with China Hainan Rubber Industry
* Govt asked Thai exporters to build stockpiles by ~300,000 tonnes to help absorb supply; shippers agree in principle to buy rubber: Chatchai
* Govt allocates 12 billion baht for rubber farmers to create jobs, offsetting decline in income amid rubber price slump: Chatchai
* Govt also considering measures to cut costs, boost productivity for farmers, increase local demand, he says
* “Through these measures, rubber prices will increase,” says Chatchai
* “This government will definitely not interfere with product prices,” he says. “We want prices to move in line with market mechanism”
* NOTE: Export price of Thai RSS3 rubber -18% YTD to lowest since December 2008; Futures in Tokyo -23% YTD
* NOTE: Thailand top producer, exporter; China largest consumer
