Heavy flooding in southern Thailand has submerged about 656,000 hectares of rubber plantations. Over 160,000 plantation workers and smallholders are now facing potential losses as estates remain waterlogged. Authorities warn that up to 90,000 metric tons of rubber output could be wiped out if floodwaters do not recede quickly. So far, losses already amount to roughly 40,000 tons across nine provinces. Major glove-making and rubber processing factories have suspended operations. Roads remain impassable, trapping workers and raw materials.

The sudden supply contraction has jolted global rubber markets. Japanese rubber futures have already ticked up as traders brace for scarcity. Analysts estimate the broader economic impact — from lost farm income, idle factories, reduced exports and disrupted downstream manufacturing — could reach 25 billion baht. Rubber-dependent workers may face extended unemployment. Export earnings for Thailand, plus global glove and tyre makers who rely on Thai rubber, are likely to feel pressure for months.