Deputy agriculture minister Newin Chidchob told Reuters that even though world prices were improving slightly, Thailand did not want to flood the market while demand levels remained uncertain.

He also said there had been no progress so far in the sale of 100,000 tonnes of rubber to China.

``I plan to keep the current stocks and to start another intervention programme in the local market,'' he said.

``Some buyers have inquired about buying rubber from government stocks but their offer prices in my view have been unattractive and still not suitable,'' the minister said.

``And if we sold our rubber it would depress the world prices and finally affect our farmers.''

On Thursday, Thai RSS3 for July shipment was indicated at 62 US cents a kg on a FOB basis compared with around 61 cents on the same basis last week.

Newinsaid Thailand was however hoping for progress in the possible sale of 100,000 tonnes of rubber to China.

``Until now we have been unable to sell anything to China under the deal,'' he said.

The Thai commerce ministry announced in April that China had pledged to buy 100,000 tonnes of rubber from Thailand this year on a government-to-government basis.

However, local traders believe China has yet to issue import licences for rubber.

Thailand announced on Tuesday it was holding 219,254 tonnes of rubber in its stockpile from market intervention over the past two years.

Its next round of intervention is due to take place between June 16 and September 15.

``I can't tell you at this moment the price at which we will buy,'' Newin said.

``It depends on the average market price a week before we begin the intervention as we use that as an indicator,'' he said.