KUALA LUMPUR: Malaysia, Thailand and Indonesia have agreed to implement the fifth Agreed Export Tonnage Scheme (AETS) beginning tomorrow (Friday).
In a statement, the International Tripartite Rubber Council (ITRC) said under the scheme, the three ITRC member countries would restrict exports of natural rubber (NR) for a specific time frame, with the objective of addressing the current declining NR price trend.
“The ITRC will continue to implement other measures with the objective of ensuring the well-being of rubber smallholders, as we strongly believe that a fair and remunerative price levels will benefit all stakeholders in the NR industry, in particular rubber smallholders,” it said.
The ITRC said the measure was one of the outcomes of the ITRC Senior Officials Meeting which was held in Chiang Mai, Thailand, on Wednesday.
The AETS was first introduced at the first Special ITRC Consultancy Meeting in Bangkok, Thailand on Aug 15, 2012 and was implemented on Oct 1 in the same year.
Meanwhile, the ITRC said the meeting also took note of the current supply and demand situation of NR and was concerned that prices were not reflective of market fundamentals.
“This is taking into account the current rainy season in the major rubber producing areas which resulted in a reduction in supply.
“In addition, stocks of NR in major importing countries such as China have shown a declining trend,” it added. - Bernama