KUALA LUMPUR, Nov 20 (Bernama) — The International Tripartite Rubber Council (ITRC) Ministerial Committee Meeting 2014, chaired by Malaysia, is expected to set up a regional rubber market within 18 months as one of the corrective measures to stabilise rubber prices.
“The framework, which consists of a full report and recommendations on the regional rubber market, is expected to be released by consultants by year-end,” Plantation Industries and Commodities Minister Datuk Amar Douglas Uggah Embas told a media briefing after the ITRC meeting in Kuala Lumpur, Thursday.
The regional rubber market will merge the markets of the main natural rubber (NR) producing countries Thailand, Indonesia and Malaysia (TIM), providing better price discovery and effective hedging functions to benefit producers, consumers and market players.
The other ASEAN countries at the meeting — Cambodia, Laos, Myanmar and Vietnam — have shown keen interest in cooperating with TIM to strengthen NR prices for mutual benefit.
Thailand was represented by its Minister of Agriculture and Cooperatives, Petipong Pungbun Na Ayudha and Indonesia by its Minister of Trade Rachmat Gobel.
Uggah noted that the three ITRC countries account for 67 per cent of global NR production, with Cambodia, Laos, Myanmar and Vietnam making up another 13 per cent.
“Setting up our own regional market will enable us to provide up-to-date and accurate information on rubber stocks.
“It will kick off with forward contracts and later go for futures contracts,” Uggah said.
Currently there are more than 4.6 million rubber smallholders in the three ITRC countries, and many have stopped tapping, said the minister.
“The ministers reiterated their commitment to ensuring remunerative incomes for the rubber smallholders, as well as a fair level to consumers,” Uggah said.
–BERNAMA
