Malaysia, Thailand, Indonesia strive to stabilize natural rubber price

Tag : natural rubbers

KUALA LUMPUR, July 3 (Xinhua) -- Malaysia is working closely withtwo other key natural rubber producing countries, Thailand andIndonesia, to stabilize the price of natural rubber in the worldmarket, an Malaysian official said here on Thursday.

The cooperation among the three major producers supplying over 80percent of the world's natural rubber has resulted in positivesentiment on the price, said Malaysian Deputy Plantation Industriesand Commodities Minister A. Kohilan Pillay.

Under a supply management scheme, the three countries have agreedto control their exports in the long run to bring about a betterbalance between supply and demand to stabilize the price, he toldthe lower house of the Malaysian parliament.

If an abrupt fall in the price occurs, the three countries hadagreed to reduce exports in the short term through the AgreedExport Tonnage Scheme.