On the 16th of August 2024, Rubber Authority of Thailand (RAOT) joins forces with Thai Rubber Latex Group Public Company Limited (THAITEX) to sign an MOU for business cooperation signed by Mr. Sukatus Tarngwiriyakul, Deputy Governor for Operations as Acting Governor of RAOT and Mr.Pattarapol Wongsasuthikul, President of THAITEX, at Rasada Meeting Room, RAOT Head Office, this MOU opens a deal for EUDR compliant fresh latex trading of over 5,000 tons/month through the RAOT’s central rubber market, Firmly confident that the Buying and selling of rubber is under a fair price
Mr. Sukatus Tarngwiriyakul, the Acting Governor of the Rubber Authority of Thailand reveals on this business cooperation that this is a concrete step forward to drive the trading of EUDR compliant fresh latex after RAOT kicked off the trading through RAOT’s Thai Rubber Trade (TRT) system beginning on the 26th of June this year. This time, we have joined forces with Thai Rubber Latex Group Public Company Limited (THAITEX), one of Thailand’s important producers and exporters of concentrated natural latex and rubber products. In the trading of EUDR compliant fresh latex, RAOT will collect 5,000 tons of EUDR fresh latex per month from latex collection points and a group of rubber farmer institutes registered with RAOT that sell through the TRT system and deliver them to the company, where RAOT will check information on the rubber production source and conduct risk assessment according to EUDR regulations before issuing an accurate and complete rubber trading information document to buyers.
This MOU is the starting point for concrete trading of EUDR latex. It shows that EUDR compliant fresh latex is in demand by entrepreneurs and is a product that has a market for it. It also helps to support the management of rubber production with the needs of EUDR compliant rubber users in balance, resulting in long term stable rubber prices. This will directly benefit rubber farmers, Rubber Farmers Institute, and stakeholders in the rubber sector. You can be confident that buyers and sellers will definitely receive a fair price. RAOT is preparing to expand cooperation in EUDR rubber trading to cover all types with other private companies in the future.
“This collaboration will Build confidence among the rubber exporting companies
in terms of production volume that is consistent and sufficient to meet the needs for processing in the rubber industry and readiness in managing rubber information in Thailand that is confirmed to be in compliance with EUDR regulations, able to be exported to EU countries as well as other countries around the world,” Mr. Sukatus emphasized.
Mr.Pattarapol Wongsasuthikul, President of THAITEX, said that it is fortunate for THAITEX to received good cooperation from RAOT in procuring products that comply with EUDR regulations. It is expected in the future that there will be a more and more demand for EUDR rubber products. THAITEX and RAOT have a joint intention to develop a central market for EUDR fresh latex by promoting trading through RAOT’s TRT system by means of price agreement.
Using the closing price of RAOT’s fresh latex market, plus premium rates based on distance and volume or as agreed if there has been a change in the rubber situation. THAITEX will inspect rubber properties according to the company’s standard criteria for rubber farmers and rubber farmer institutes to get a fair EUDR latex price.
