Thailand, the largest producer in the world, will discuss with Indonesia and Malaysia on possible limits to shipments from the countries, representing 70% of supply to boost plunging prices.
“If necessary, there will be a limit on exports. The three countries will have to jointly make the decision and set the amount,” said Deputy Farm Minister Nattawut Saikuar.
Prime Minister Yingluck Shinawatra will discuss the matter “informally” with leaders from Indonesia and Malaysia, he said without giving a date for the meeting.
Prices dipped by 26% this quarter, the most since the final three months of 2008, as growth slowed in China, the biggest consumer.
While Thailand is building inventories and cutting ageing trees, local auction rates have dropped 24% from this year’s peak. The country announced plans last month to buy more than 10,000 tonnes in Tokyo and Shanghai and to cooperate with the Southeast Asian neighbours with whome in 2009 it cuts sales to combat a slump amid the gobal financial crisis.
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