She said an "integrated solution" was needed to the problems besetting the industry - from upstream to middle stream and downstream - in addition to taking care of rubber planters in the long term.
Ms Yingluck called a meeting with the private sector to discuss the rubber industry on Friday
She said the government will take care of the problems of rubber planters caused by the falling price of rubber, and will not discriminate along political lines, but measures to be implemented must take into account overall factors.
She would await the outcome of discussions between the committee headed Deputy Prime Minister Pracha Phromnok and rubber planters in the South who are demanding the government to provide a price guarantee of 100 baht a kilogramme for their smoked sheet rubber.
Discussions would include appropriate zoning to ensure high productivity and good quality as well as reducing costs for rubber growers.
She believed that if the cost of producing natural rubber can be reduced to be competitive with synthetic products, manufacturers were likely choose more natural rubber.
For middle stream and downstream production, Ms Yingluck said, the Finance Ministry had made available 15 billion baht to support rubber processing and the private sector was quite satisfied with the measure, according to the prime minister.
It would increase the use of natural rubber in products such as medical rubber gloves, the food sector and in the agro-industry and automobiles.
She said the government will also try to increase use of natural rubber in government projects, such as road building and other infrastructure construction.
Lakchai Kittipol, of the Thai Rubber Association, said the rubber price has bottomed out since May because China already announced its rubber needs, so the average price this year is at the same level as in 2008. However the rubber price rose after 2008 along with the rise in the oil price and market demand.
He said the rubber price is unlikely to rise again ecause of the high volume of supply from other countries, especially Malaysia, Vietnam and China.
“The truth is the rubber situation has passed the critical point a long time ago.
" I am of the view that price intervention will only result in an addiction to high rubber prices.
"The government should explain the situation to planters, that rocketing high prices of rubber in the past were caused by speculation,” said Mr Lakchai.
Yiam Thavarorit, CEO of International Rubber Consortium Company (IRCo), formed by leading rubber producing countries Indonesia, Malaysia and Thailand, said the three countries had reduced exports by 300,000 tonnes to help cushion the global rubber price.
He said the three countries were in the process of establishing a central three-country rubber market to ensure rubber trading prices were more realistic, not speculative.
Mr Yiam said the price of synthetic rubber is only 55 baht a kilogramme, making it more attractive for manufacturers