Thailand plans to reduce plantation area by 100,000 rai (16,000 hectares) a year for 7 years,says Prasit Meadsen, acting director of the Office of the Rubber Replanting Aid Fund (Bloomberg).  Plan, to start in fiscal year beginning Oct., will reduce supply by ~190,000 tons over 7 years, Prasit says by phone.

Aging trees in area of 400,000 rai (64,000 ha) will be cut down each year,though farmers will be allowed to replant rubber on an area of 300,000 rai (48,000 ha), according to decision today by the National Rubber Policy Committee.  Farmers will receive incentives to plant other crops including oil palm over the 100,000 rai (16,000 ha) area.