Bangkok – The governments of Thailand, Malaysia and Indonesia, members of the International Tripartite Council (ITRC), have started a cut in exports of natural rubber.
In a 22 Dec statement, ITRC’s operational arm the International Rubber Consortium (IRCo) said the trio would cut NR exports by 350,000 tonnes between 22 Dec and 31 March.
Dubbed the agreed export tonnage scheme (AETS), the plan will be implemented through each country’s respective domestic regulators. It will include addressing business commitments under existing forward contracts.
The AETS move follows through on a decision to curb exports, which was agreed on 29 Nov following an ITRC meeting in Bangkok.
According to the IRCo report, the meeting also studied cooperation between the three countries to increase NR consumption domestically.
Proposed measures include using NR in various sectors such as transport, consumer goods and rubberised roads.
The three states have voiced their confidence that the new steps will help prices recover.