KUALA LUMPUR, Feb 4 (Bernama) — Thailand, Indonesia and Malaysia have agreed to implement the Agreed Export Tonnage Scheme (AETS), effective March 1, 2016 aimed at shoring up flagging natural rubber prices.
The International Tripartite Rubber Council (ITRC) said under the scheme, the three countries, which account for 67 per cent of world rubber production, will withdraw exports of 615,000 tonnes of natural rubber for six months from March 1 to August 31, 2016.
The Statistics Department reported that Malaysia exported 45,259 tonnes of natural rubber in November 2015, down 18.3 per cent, from a month earlier.
It was 2.5 per cent or 1,166 tonnes less than the output recorded in November 2014.
The move to adopt the scheme came about after the Minister of Agriculture and Cooperatives of Thailand, Minister of Trade of Indonesia and Minister of Plantation Industries and Commodities of Malaysia expressed concern over the recent trend in declining rubber prices.
The dwindling prices had a direct effect on the income of rubber smallholders in the three countries, ITRC said in a statement.
In addition to address the oversupply of natural rubber, the council also agreed to increase domestic consumption by utilising the commodity for road construction, rail pads for railway construction and other suitable areas.
“We are optimistic with the joint implementation of these measures, rubber prices will recover and continue to be fair and remunerative to all smallholders and other stakeholders in the industry.
“This implementation will be closely monitored by the ITRC Monitoring Committee,” said ITRC.
— BERNAMA
