The government plans to buy rubber from farmers at a purchase price not exceeding 45 baht per kg.
The projected price is about 15 baht lower than the set price demanded by groups of rubber farmers who are calling for 60 baht per kg, roughly double current market levels.
On Tuesday the government agreed to buy 100,000 tonnes of all types of rubber products directly from growers at an above-market price in an attempt to ease pressure on rubber farmers.
A source close a government committee working on the issue said the purchase price will be capped to be between 40-50 baht and the panel is negotiating with rubber growers in the hope of positive feedback.
Pol Maj Gen Kraiboon Suadsong, head of the government's working committee for negotiating with rubber farmers, said buying is expected to begin late this month.