Illustrative photo (Source:Internet)

Jakarta (VNA) – Indonesia’s rubber exporters have agreed to cut their exports from March to August 2016 to realise the International Tripartite Rubber Council (ITRC)’s Agreed Export Tonnage Scheme (AETS).

The AETS for 2016 was agreed among the world’s three biggest rubber producers namely, Thailand, Indonesia and Malaysia in order to reduce supplies and increase prices that are trading near six-year lows.

Under the scheme, the three countries will cut exports of natural rubber by 615,000 tonnes for six months.

Accordingly, Thailand will cut exports by 324,000 tonnes; Indonesia 239,000 tonnes and Malaysia by 52,200 tonnes. The total cuts account for nearly 6 percent of global natural rubber output.

Besides cutting exports , the three countries also agreed to increase domestic consumption of rubber, including for road and railway construction.

The world’s rubber consumption in 2016 is expected to decrease 1.3 percent to 12.6 million tonnes, while production expands 3.8 percent to 13 million tonnes.-VNA