INDONESIA, the second largest global producer of rubber,is forecast to bring on an increase of 7% to 3.2 million tonnes in output in 2013 ,compared to 3 million tonnes last year, and this is due to higher yields, according to the Indonesian Rubber Association (Gapkindo).
This new estimate is more than the Agriculture Ministry forecast of 2.77 million tonnes.
Exports may drop slightly from 2.8 million tonnes last year to 2.7 million tonnes in 2013, from 2.8 million tonnes last year, due to rising domestic demand from the tyre industry, the association also observed.
The country’s biggest rubber buyer is the US, accounting for 20% of its exports, with China and Japan accounting for 15% each.
Previously, Gapkindo also said the dry weather conditions would nudge down the 2012 output by 10% on the year to 2.8 million tonnes .(RJA)
Asia's First E-Magazine for the Rubber Industry