Thailand on “alert” as NR disease spreads, 6th AETS underway

Southern Thailand is currently wary of the pestalotiopsis disease (fungal disease) that could threaten their natural rubber (NR) plantations. The subject was discussed at a meeting by the International Rubber Consortium (IRCo) on August 16, 2019. Representatives of the board, including Thailand, Indonesia and Malaysia (TIM), are of the view that the disease is due to lack of good agricultural practices – a consequence of the prolonged low rubber prices. The production in Thailand for 2019 was expected to decrease due to tapper shortage as well.

Similarly, the Indonesian Government announced a minimum of 15% reduction in the country’s production in 2019, as about 382,000 hectares of NR plantation has been affected by the fungal disease. The production of Malaysia would also be low due to the unattractive rubber prices.

Meanwhile, the IRCo meeting was updated on the performance of the 6th Agreed Export Tonnage Scheme (AETS) – TIM confirmed their commitment in an effort to improve the well-being of smallholders through the stabilising of NR prices.

As for prolonged trade tensions between US-China that would affect the global demand of NR, TIM has intensified efforts to increase the domestic consumption of rubber in infrastructure projects, such as rubberised roads, seismic/bridge bearings and others.