The Department of Agriculture has ordered a suspension of concentrated latex imports following farmers’ concerns over irregularities. The Department explained that Trump’s tariff hikes remain a key factor in the price decline.

Meanwhile, Thailand’s rubber production in 2025 slightly decreased to 4.7 million tonnes, despite rising demand.

From January to April 2025, Thailand’s natural rubber exports were valued at US$2.008 billion, marking a 23.20% increase. Major export markets include China, Japan, the United States, and Malaysia. 

For the entire year of 2024, exports totalled approximately US$4.992 billion, an increase of 17.32%. Natural rubber remains a significant export commodity, generating substantial revenue for Thailand. However, rubber farmers are currently facing various challenges due to fluctuating prices.

Thammarat Thongmee, Director of the Rubber Division at the Department of Agriculture, revealed that the department has requested operators to delay the import of concentrated latex that meets quality standards equivalent to those produced in Thailand. This request, made under Section 26 of the Rubber Control Act 1999, aims to stabilise rubber prices and mitigate the impact on domestic farmers. 

This action follows an order from Narumon Pinyosinwat, Minister of Agriculture and Cooperatives, who instructed relevant agencies to investigate after the Rubber Farmers Federation of Thailand sent an open letter questioning the Department’s approval of imports of specific concentrated natural latex from abroad.

Price Drop Linked to Fears Over Trump’s Tariffs

The recent decline in rubber prices primarily stems from the impact of US tariff measures. The Ministry has been actively addressing the price issues through effective enforcement of the Rubber Control Act. To minimise overall risks, the Department has urged operators to postpone latex imports temporarily. The department has also communicated the facts to operators and will issue an official circular to all stakeholders soon.

Uthai Sonlaksap, President of the Rubber Farmers Federation of Thailand, stated that the federation sent an open letter to Narumon requesting official clarification on policies after reports from the federation’s board meeting indicated unusually high volumes of imported concentrated latex being approved.

Data from the “Rubber Statistics Book 2024”, attached to the letter, reveals that imports of concentrated latex—equivalent to 5,615 tonnes of dry rubber or approximately 9,358 tonnes of 60% concentrated latex—have been recorded, despite the government’s clear announcement prohibiting the import of natural rubber from abroad. Strict crackdowns on smuggling along border areas have also been enforced.

Import Permission Limited to Specific Formulations

“The permission granted for imports specifies ‘special formulations,’ even though Thai researchers are capable of developing these formulas independently. This may be an excuse to circumvent the higher domestic production costs and has effectively become a loophole for importing regular concentrated latex at lower prices,” the association stated.

The federation noted that this situation is causing difficulties for domestic operators, making it harder to sell concentrated latex. Several factories have begun halting production or delaying rubber purchases from farmers, particularly during the period of severe rubber price declines, which has caused significant losses for many farmers.

The association has called on the Minister, in their capacity as the Rubber Control Act custodian and chairman of the Rubber Control Committee, to urgently clarify the policy on rubber import management and control. This clarification is critical for the federation to properly inform its affected farmer members nationwide.

According to the Rubber Authority of Thailand, the Natural Rubber Producers Association projects that global natural rubber production in 2025 will reach 14.90 million tonnes, up from 14.83 million tonnes in 2024—an increase of 0.5% compared to the previous year. This reflects stability in the global natural rubber industry.

Agriculture Department halts latex imports amid farmers’ complaints

Thailand Remains the World’s Leading Natural Rubber Producer

Thailand, the world’s top natural rubber producer, recorded a production volume of 4.79 million tonnes in 2024, slightly down from 4.81 million tonnes in 2023—a decrease of 0.4% compared to the previous year. The decline is mainly attributed to unfavourable weather conditions and natural factors affecting production, such as leaf fall disease.

Globally, natural rubber consumption is expected to reach 15.63 million tonnes in 2024, up from 15.37 million tonnes in 2023, representing a 1.7% increase. This growth reflects rising demand for natural rubber across various industries worldwide, including the tire manufacturing and medical equipment sectors.

China remains the largest consumer of natural rubber globally, with consumption reaching 6.99 million tonnes in 2023, up from 6.86 million tonnes in 2022—an increase of 1.9%. This growth is primarily driven by the expansion of China’s automotive industry and other sectors that rely on rubber as a raw material.

Following China, India consumed 1.45 million tonnes of natural rubber in 2023, up from 1.41 million tonnes in 2022, marking a 3.6% increase. This reflects economic and industrial growth in India. Meanwhile, Thailand’s consumption stood at 1.20 million tonnes in 2023, slightly down from 1.23 million tonnes in 2022, a 2.9% decrease due to slowing demand in some key markets.

In the first quarter of 2025, Thailand’s natural rubber exports totalled 1,137,596.1 tonnes, an increase of 68,266.5 tonnes (6.4%) from 1,069,329.6 tonnes in the fourth quarter of 2024.

Source : The Nation