Thailand has agreed for export cutbacks of about 240k-tonnes of rubber, together with regional producers Indonesia and Malaysia, to support declining rubber prices. However, the global rubber exporter delayed the measure because of its general election in March, and will only begin to cut rubber exports by 126,240 tonnes from May 20 onwards, according to Thailand’s Rubber Association.
Most of Thailand’s rubber production is from small and medium-sized family-run farms across the country, while larger plantations with more than 16,000 trees are located in the upper province of the southern peninsula.
Yium Tavarolit, Acting Governor of the Rubber Authority of Thailand (RAOT) said the gross production will be assessed monthly and the cuts reviewed if rubber prices have not stabilised.
This follows an agreement by the International Tripartite Rubber Council (ITRC) to limit the natural rubber exports of its member countries over a four-month period starting April 2019. Thailand, Indonesia and Malaysia jointly account for about 70% of the world’s natural rubber production. The ITRC have also tried to elevate rubber’s domestic use in each of the three producers through developments such as rubberised roads and subsidies to rubber farmers.