THAILAND’S rubber growers in the southern provinces have agreed to reduce supply by at least 25% in an attempt to stabilise prices that have been declining steadily for two months. Planters will reduce tapping to 15 days a month from 20 during the high season.
Delaying output entering the market is among several measures intended to shore up rubber prices.
The International Rubber Consortium Company (IRCo), formed by three leading rubber producers, Indonesia, Malaysia and Thailand, represent 70% of global supply.
The suppliers have also agreed to set a minimum price for natural rubber of US$3 per kg, according to recent reports. The countries are taking measures to stem the slump in prices and delay latex tapping and limit shipments to keep export prices above US$3.50 a kg, according to Thailand’s Ministry of Agriculture and Cooperatives. They will cut down more ageing trees, boost replanting and increase stockpiles.(PRA)
Asia's First E-Magazine for the Rubber Industry