Thailand, Malaysia & Indonesia pledge to reduce their rubber exports.
The three Southeast Asian countries grouped in the International Tripartite Rubber Council (ITRC) have pledged to cut exports of rubber by 615,000 tons in the next six months. Indonesia has agreed to cut its exports by 238,736 tons, while Malaysia & Thailand have pledged to reduce their overseas shipments by 52,259 tons & 324,005 tons, respectively.
Indonesia, Thailand and Malaysia supply 67 per cent of the world’s rubber. In addition to reducing exports, the countries also agreed to increase domestic consumption of natural rubber, such as in infrastructure projects.
According to a statement issued by the ITRC secretariat, the council is optimistic the measures will trigger a recovery in rubber prices & ensure fair prices to all smallholders & other stakeholders in the industry.
The Trade Ministry’s acting director general for foreign trade, Karyanto Suprih stated that, “The export reduction will make markets absorb existing global rubber supplies in turn stabilizing the price.”
The agreement was a follow up to an ITRC meeting in December in Jakarta in which the three countries discussed efforts to maintain a global supply-and-demand balance amid a price slump & low production in the three nations.