The Ministry of Agriculture and Cooperative of Thailand said that from now till the end of March 2018, the rubber output of the world's three largest natural rubber producers will be reduced by up to 350,000 tons in the hope of curbing the global rubber price drop.
The International Tripartite Rubber Council (ITRC) announced the exit after its meeting on the 22nd. Rubber production in the three countries of Thailand, Indonesia and Malaysia accounts for nearly 70% of the global gum production.
Nairat, Assistant Minister of Agriculture of Thailand, said that the cut export plan reached this time is one of the key measures to solve the price fluctuation of rubber.
Thai Rubber Board said that since the end of January, Thailand RSS3 rubber prices have dropped 45% due to oversupply and the slowdown in China, the United States and Japan.
Narathi said Thailand will cut about 230,000 tons of rubber exports, Indonesia cut about 95,000 tons, Malaysia cut about 20,000 tons. Thailand produces about 5 million tons of natural rubber each year, most of which is exported.
Last year, three countries, Thailand, Indonesia and Malaysia, agreed to cut their exports of 615,000 tons in six months.
Tiata, director of the Thai Rubber Board, said the reduction of exports could boost the price of rubber. The International Tripartite Rubber Council believes that this cooperation will stabilize the rubber price and benefit small-scale farmers and agribusiness as well as all people in the rubber supply chain.
In addition to cutting exports, he said, the council also agreed to boost domestic rubber use, including in transportation and infrastructure projects, to consume higher global rubber output.
At present, only about 600,000-800,000 tons of rubber are used domestically in Thailand. Earlier this month, the Thai government said it plans to raise domestic rubber consumption to over 1 million tons per year.
