(By reuters.com)

Thailand’s military government will encourage farmers in the world’s biggest rubber producer and exporter to cut down more rubber trees in a bid to restrict supply to help shore up prices, a senior government official said on Tuesday.

Global rubber prices have tumbled more than 25 percent this year on persistent worries about demand from top consumer China and oversupply. Sellers in Thailand and other producers in Southeast Asia are complaining tyre grade prices are already below production cost.

The price of benchmark Thai smoked rubber sheet (RSS3) has dropped by a fifth this year to $2.00 per kg, down from $2.45-$2.50 a kg early this year.

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