INDONESIA, the world’s second largest producer of rubber, calls on two other top producers Thailand and Malaysia to scrap the agreement of curbing rubber exports since it has effected insignificant impact on global rubber prices.
In August 2012, the three countries, which account for about 70% of world output, agreed to cut down rubber trees and curb exports by 3% ro 300,000 tonnes of global production to shore up global prices.
Whilst the measure had effected an initial boost in the Tokyo Commodity Exchange, the market reverted to the gloom of EU debt crisis slowing demand, a volatile yen, and high inventory in main consumer China and rising output.
The agreement is expiring on March 31, but Thailand has expressed its plan of extending on the terms for two more months, whereas Indonesia and Malaysia have dropped their interest to retain the deal.