Thailand, Indonesia and Malaysia will cut down rubber exports to tackle the decreasing price of the commodity.(Photo: Antaranews.com)

Jakarta (VNA) – Three large producers of natural rubber in Southeast Asia, namely Thailand, Indonesia, and Malaysia, have agreed to cut down rubber exports by some 200,000-300,000 tonnes to tackle the decreasing price of the commodity.

The three had come up with a scheme called the Agreed Export Tonnage Scheme (AETS) during their meeting at the International Tripartite Rubber Council (ITRC) last month in Bangkok, Thailand.

Coordinating Minister for Economic Affairs Darmin Nasution elaborated that the AETS will begin implementation in the next three months.

All details regarding AETS will be discussed further during the Senior Official Meeting of the ITRC on March 4 in Thailand.

In terms of each country’s contribution of rubber production, Thailand was the highest with 52 percent; Indonesia, 38 percent; and lastly Malaysia, 10 percent.

This rubber export reduction policy is important to restoring the fundamental price of natural rubber, which is presently priced at 1.45 USD per kg. Meanwhile, for a farmer, the price is even lower, ranging between 7,000-7,500 IDR (0.5-0.55 USD) per kg.

Aside from the reduction of rubber exports, the two other strategies that the ITRC has come up with are the Demand Promotion Scheme related to domestic consumption in each country and the Supply Management Scheme concerning the commitment to replanting natural rubber trees. –VNA