BUSINESS INFORMATION -Three state's largest natural rubber producer in ANRPC (Association of Natural Rubber Producing Countries) namely Thailand, Indonesia, and Malaysia went on a rubber supply control policy to the world market.
"We will continue to control the supply of natural rubber to the world market to prevent prices from falling again to protect the three million rubber farmers in the three countries," said minister of plantation industries and commodities, Malaysia, Bernard Giluk Dompok, in Kuala Lumpur, Tuesday.
Third agricultural officials of Indonesia, Thailand, and Malaysia - as the three largest rubber producing countries in ANRPC about 70%, held a meeting in Kuala Lumpur. Meeting three largest rubber producing countries were called ITRC (International Tripartite Rubber Council).
Malaysian Deputy Minister Bernard attended immediately Giluk Dompok, Indonesia was represented deputy agriculture minister Krisnamurthi, and represented Thailand's deputy agriculture and cooperatives minister Supachai Phosu.
All three countries agreed to maintain this policy for having raised the price of rubber from 1.36 U.S. dollars per ton of rubber on December 30, 2008 to 2.87 dollars per kg on December 30, 2009.
There was an increase up to 111 percent after one year of running the supply management scheme and the scheme limits the amount of rubber exports. And now the price of rubber has reached three dollars per kg.
"Because the price is very profitable farmers, so policies to control supply and export markets will continue," said Bayu Krisnamurthi, vice Mentan RI.
"Rubber farmers' production costs ranged from 1 to 1.2 dollars per kg of rubber. It makes, if the current rubber price of three dollars per Kg is great for farmers," said Bayu.
To better control the production and supply of rubber exports to world markets, ITRC will invite Vietnam to join the ITRC. Vietnam is a major rubber producing countries but also outside ANRPC.
Vietnam is also the largest producer of rubber-5 in the world, When Vietnam joined the ITRC, the four countries that will control the world's rubber production rose from 70 percent to 76 percent and rubber supplies to world markets also rose from 84 percent to 93 percent.