Senin 29 Feb 2016 23:22 WIB

Rubber exporting countries urged to reduce supplies

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Foto: ANTARA/Garifianto
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REPUBLIKA.CO.ID, PALEMBANG -- The world rubber exporting countries have to reduce their rubber supplies to the international market if they hope for an increase in the rubber prices amid the slowdown of global economy, a spokesman has stated.

"There is no other alternative, as each of the largest exporting countries namely Indonesia, Malaysia and Thailand should be really committed to reduce rubber export from 17 to 20 percent. Otherwise, the rubber prices will continue to drop," Chairman of the Indonesian rubber entrepreneurs association of South Sumatra chapter office Alex K Eddy, said here Monday.

By reducing rubber exports, the rubber price is expected to reach $2 per kg unlike the current price of only around $1.2 per kg, he stated.

"The three countries (Indonesia, Malaysia, and Thailand) have met (to reach the agreement), now the point is how to control the commitment. Otherwise, the rubber farmers will no longer be interested in growing rubber plants," he explained.

Indonesia, which produces three million tons of rubber per year, has set a target of domestic consumption of up to 800 thousand tons in 2016 by utilizing infrastructure development, he added.

sumber : Antara
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