Thailand, Indonesia and Malaysia, the rubber-producing countries which make up the International Tripartite Rubber Council (ITRC), could soon be implementing another round of the Agreed Export Tonnage Scheme (AETS) to steady market price of natural rubber (NR) and address unforeseen market conditions.
The decision follows expectations that NR production is to drop by 800,000 tonnes this year due to numerous factors, including the outbreak of Pestalotiopsis fungal disease, erratic weather conditions and sluggish tapping activities.
The Pestalotiopsis disease has already affected some 380,000 ha in Indonesia, 52,000 ha in Thailand and 5,000 ha in Malaysia – at least 70% of productivity is estimated to be reduced in areas of the worst cases; which will undoubtedly affect the livelihood of NR smallholders.
“TIM are extremely concerned on the rapid spread and damage brought about by the Pestalotiopsis disease which continues to devastate rubber plantation areas in Indonesia, Thailand and Malaysia, and will work in concerted effort in facing these challenges.” the council said.