BANGKOK — Indonesia, Malaysia and Thailand, collectively known as the International Tripartite Rubber Council (ITRC), have agreed to cut natural rubber (NR) exports by a combined 200,000 to 300,000 metric tons to address the "prevailing depressed NR price level."
Government ministers from the three countries said during a Feb. 21 meeting in Bangkok that ITRC officials would discuss details of an "agreed export tonnage scheme' within two weeks.
The move is intended to address "the prevailing depressed NR price level,"
NR markets and prices have been "hovering at a low level throughout the year 2018 until early 2019," according to the International Rubber Consortium (IRCo) – ITRC's operational arm.
However, it noted, ITRC ministers have been encouraged "by the improved NR price globally since the middle of December 2018."
An improved NR price would help keep it attractive for smallholders to plant and harvest, the ministers said.
The three countries produce roughly 60 percent of global rubber output of 14 million tons.