ITRC to cut natural rubber exports 200,000 to 300,000 tonnes

KUALA LUMPUR: The International Tripartite Rubber Council's (ITRC) Special Ministerial Committee Meeting has decided that the Agreed Export Tonnage Scheme (AETS) will be implemented to reduce exports from Thailand, Indonesia and Malaysia (TIM) by 200,000 to 300,000 tonnes.

In a joint statement, ITRC said its senior officials will discuss details of the AETS implementation within two weeks in Thailand.

"Member Countries shall also continue to implement projects under Demand Promotion Scheme (DPS) which would increase the domestic consumption significantly,” it said.

The Council said Thailand was implementing the DPS project which would consume an additional 270,000 tonnes of rubber, on top of the 700,000 tonnes forecast for its regular annual consumption.

Thailand has also been implementing its Strategic Market Operation through six physical rubber markets which has resulted in improved natural rubber (NR) price in the domestic market.

"With this operation, the trading volume of physical rubber in 2018 increased by 105,600 tonnes with the total value of US$225 million (US$1=RM4.07)," said ITRC.

The ministerial committee meeting, attended by ministers from TIM, was held yesterday in Bangkok, Thailand.

Meanwhile, the Council said Malaysia would continue its rubberised road project with the approved RM100 million allocation by the Malaysian government for the maintenance and construction of roads using cup lump modified bitumen in ports and industrial areas.

As for Indonesia, NR is utilised in various infrastructure projects, such as provincial and district roads throughout the country, railroad track dampers, road separators, bridge bearings and tyre retreading.

The ITRC also said the ministers were committed to continuing and enhancing the implementation of the Supply Management Scheme to achieve long-term equilibrium in NR demand and supply.

Thailand has continued replanting rubber trees by 65,000 hectares (ha) per year, while Indonesia will initiate the replanting of rubber trees covering 50,000ha per year and Malaysia is implementing its replanting programme involving 25,000ha per year.

The meeting also deliberated on the future direction of the Regional Rubber Market (RRM) as a futures market and the establishment of an arbitration centre to support the RRM.

It said that the ministers also agreed to propose the establishment of ASEAN Rubber Council as a platform to discuss the development of NR industry and cooperation with other ASEAN countries and ASEAN dialogue partners. - Bernama