Natural rubber exports to be cut

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Natural rubber exports to be cut

Published: 16 Aug 2012 at 16.08
Online news: Local News

Thailand, Indonesia and Malaysia - which produce about 70 per cent of the global natural-rubber supply, have agreed to cut exports of the commodity by 300,000 tonnes in an attempt to raise the price, Agriculture and Cooperatives Deputy Minister Nattawut Saikuar said on Thursday.

Mr Nattawut, a co-leader of the red-shirt United Front for Democracy against Dictatorship (UDD), said a meeting of representtives from the three biggest rubber producers agreed on the cut with the aim of boosting the market price of natural rubber.

Under the agreement, Thailand will cut its rubber exports by 150,000 tonnes. The remaining 150,000 tonnes will be shared by Indonesia and Malaysia, he said.

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hawaiiman
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Discussion 10 : 17 Aug 2012 at 10.3010
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Farming is a tough business. To plant a crop is to take a risk. To plant a long term crop is a big risk. I seem to remember that past governments have been subsidizing new rubber plantings. Over planting in rubber and palm oil has torpedoed these markets. Farmers who have stayed with short term plantings like starch, and sugar maintain flexibility. The world demand for sugar continues to advance, despite above average prices and a weak world economy. Corn, peanut oil,and soybean prices are at all time highs. Personally, I'd be taking out rubber and planting cane,soybeans, peanuts, or corn rather than whining to the government.
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spiceman
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Discussion 9 : 17 Aug 2012 at 06.419
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Have anyone heard of the thing we called "Synthetic Rubber," which is superior to natural rubber. Also, Khun mitrapaap #2 is absolute correct, a temporally rise in the price of rubber will only motivate rubber farmers elsewhere to plant more rubber trees. The end result will be that any artificial drop in the supply of rubber from Thailand, Malaysia, and Indonesia will be easily met by an increase in rubber production else where like Latin America, and even the synthetic rubber. The end result will that there will be even more total supply of rubber in the long run and with that, price will drop even further. Then, what?
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wyle
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Discussion 8 : 17 Aug 2012 at 05.408
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Fact. As of yesterday, local rubber growers in Udon Thani area were getting 30 Baht per kilo (the true market price) from their local buyer. As with the rice pledge program, the middle man and warehouse owners are getting most of the money. The farmer gets more in debt. Anybody who thinks this government is for the poor farmer should look at the farmer's pocketbook.
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johninbkk
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Discussion 7 : 17 Aug 2012 at 00.497
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All profits gained from the higher prices will be lost from the decreased sales.
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KhunBob
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Discussion 6 : 16 Aug 2012 at 21.146
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I wonder what would happen if companies did this same thing to increase prices, the government would be yelling foul. Prices should be based on the free market not these illgeal schemes to raise prices.
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onlyme
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Discussion 5 : 16 Aug 2012 at 19.545
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While Thailand is building inventories and cutting aging trees, local rates have fallen 33 per cent from this year's peak to the lowest level since November 2009. The country announced in May plans to buy more than 10,000 tonnes in Tokyo and Shanghai to boost prices.

World market is 11.2 million tons so how does the above relatively small purchase to boost prices work?
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bern1005
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Discussion 4 : 16 Aug 2012 at 19.454
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Thailand is indeed the largest producer of natural rubber in the world and past growth in production has been valuable to the country. However, natural rubber only accounts for about 40% of total rubber production and at the end of 2011 there was a surplus of nearly 600,000 tonnes of production over consumption world-wide.
300,000 tonnes looks too small an amount to create a deficit in the world's supply-demand equation given the continuing fall in world demand.
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nz-thai
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Discussion 3 : 16 Aug 2012 at 19.253
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If the Rubber growers stopped encroaching on forests & planting more rubber trees we would not have an over supply, cut back on production and replant the native trees. Problem solved
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mitrapaap
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Discussion 2 : 16 Aug 2012 at 17.592
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I sure hope Thailand, Indonesia and Malaysia are the only countries on the planet to produce rubber, becuase if not, some other countries will have a big smile on their export face when the numbers increase.

As if the rice pledging scheme was not already disastrous enough, PT again tries to mess with the market price of one of its export products. And even though I'm not an economist, I can't get rid of the feeling that it will rather backfire.
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bluebottle
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Discussion 1 : 16 Aug 2012 at 16.371
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Sorry am I missing something here How will that help the producers if exports are to be cut? DO they think they can hold the world to ransom when it is in recession and dose not need the rubber anyway.
Typical politicians idea of resolving a problem. Help the farmers to produce a harvest that the world needs, FOOD.
PS Spain are complaining that Asia is ruining its farming industry with cheep exports.
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Natural rubber exports to be cut | Bangkok Post: news