Malaysia, Indonesia to Withdraw Natural Rubber from Market to Help Price Recover

KUALA LUMPUR, Aug 18 (Bernama) -- Malaysia, Indonesia and Thailand have taken two measures that will withdraw a total of 450,000 tonnes of natural rubber (NR) from the market to help the rubber price recover. In a joint statement issued Friday, the countries said they had finalised a mechanism for the implementation of the Agreed Export Tonnage Scheme under which they will withdraw 300,000 tonnes of NR exports. The countries also agreed to accelerate a replanting programme of 100,000 hectares of rubber which would result in a further reduction of exports by 150,000 tonnes. "We are optimistic that with the joint implementation of these measures, rubber prices will recover and will continue to be fair and remunerative to all smallholders and other stakeholders in the natural rubber industry," the statement said. The implementation will be closely monitored by the International Tripartite Rubber Council (ITRC) Monitoring and Surveillance Committee. According to the statement, the three countries were concerned over the recent drop in NR prices which had a direct effect on the income of rubber smallholders. "This is despite the fact that demand for natural rubber remains strong with low stock level," it said. The drop in price was mainly contributed by negative market sentiment caused by various factors including uncertainties in global economic growth, the statement said. -- BERNAMA