Thailand, Malaysia and Indonesia are hopeful of seeing the end of sagging natural rubber prices after agreeing on export cutbacks, Agriculture Minister Grisada Boonrach said.
The minister expressed confidence about the turnaround of rubber prices following the implementation of the three countries in the International Tripartite Rubber Council to curb exports for three months starting from Jan 10.
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The three main rubber-producing nations agreed to cut back their exports of 350,000 tonnes during the period. As the leader in rubber production and global seller, Thailand has to cut 234,810 tonnes from the total target.
"The three countries will seriously implement the measures," Mr Grisada said.
Despite the regional pledge, the price of Thai smoked rubber sheet Grade 3, which is the benchmark of the product, only slightly increased from 46.36 baht per kilogramme on the day that the regional pledge took effect to 49.30 baht on Thursday.