Kuala Lumpur – Major natural rubber producing countries have decided to stop expanding NR planted areas until 2020 to ensure that a “healthy balance” of supply and demand in the global market.
At a ministerial committee of the International Tripartite Rubber Council (ITRC) in Kuala Lumpur, represented by Thailand, Indonesia and Malaysia, on 20 Nov, the three countries discussed various measures to strengthen declining rubber prices.
“The Ministers agreed that ITRC countries will ensure that the allowable planted area under the Supply Management Scheme (SMS) for the period 2015 - 2020 for the TIM countries do not exceed the target set. These include not expanding new planted area. This is to ensure healthy balance of NR supply and demand in the global rubber markets,” said a press release by the council.
Also discussed at the meeting were the latest developments in rubber market, supply fundamentals, current stock levels and the recent price trend.