* Producers to meet in Kuala Lumpur next week
* Benchmark global prices down 25 percent this year
By Manolo Serapio Jr and Anuradha Raghu
SINGAPORE/KUALA LUMPUR, Nov 13 (Reuters) – Rubber producersin Asia are to meet next week to look at more measures to pushup prices, which are not far above five-year lows, includingrestrictions on supply to global markets, a source who will bepart of the meeting said.
Last month rubber associations from Thailand to Cambodiaurged producers not to sell the commodity below a minimum priceof $1.50 per kg and top producer and exporter Thailand laterapproved a 58 billion baht ($1.8 billion) subsidy plan tosupport farmers.
Global prices have since recovered from their lowest levelssince 2009, but the market remains depressed and many Asianfarmers are abandoning tapping to look for other jobs.
Meeting in Kuala Lumpur on Nov. 20 are ministers fromThailand, Malaysia and Indonesia, which form the InternationalRubber Consortium (IRCo). Officials from Cambodia, Laos, Myanmarand Vietnam will also attend.
Together, the seven countries account for 77 percent ofglobal natural rubber production.
“The meeting will look at what’s the best measurerubber-producing countries can take to stabilise prices,” saidthe source, who declined to be identified ahead of the plansbeing finalised.
“There are three perspectives we’ll be looking at – reducingsupply to global markets, reducing domestic supply or increasingdomestic demand.”
In 2012-13, the IRCo agreed to remove 300,000 tonnes, or 3percent of 2012 global output, from the export market. However,the intervention only briefly supported prices and Indonesiapublicly called for the pact to be discontinued.
The meeting will discuss measures to address the issue ofprice volatility as well as “possible cooperation” amongproducers to get a fair price level for natural rubber, YiumTavarolit, head of the IRCo said on the organisation’s website.
Benchmark Japanese rubber futures hit a five-year trough of173.8 yen per kg in early October and although the price hasrecovered slightly, at 206 yen ($1.78) it is still down 25percent this year.
“The fact that the rubber producers are gathering does showsome solidarity and cooperation and even if it does nottranslate to concrete action, it should be positive for themarket,” said a trader in Singapore.
(1 US dollar = 32.8300 Thai baht)(1 US dollar = 115.5300 Japanese yen) (Reporting by Manolo Serapio Jr. in Singapore and AnuradhaRaghu in Kuala Lumpur; Editing by Alan Raybould)
– Reuters
