Indonesia to cut rubber production and exports in order to support rubber prices

Oct. 16, Indonesia, a senior industry said Thursday that the Indonesian government plans to cut rubber production and exports 30% up to the rapid decline in rubber prices.

Indonesian Rubber Association, Suharto Honggokusumo chairman, said, "the Ministry of Agriculture has asked farmers to the frequency of self-tapping is usually adjusted every two days for the first time every three days, in order to reduce the supply of raw materials entering the market."

"If this will be effective immediately, although several measures are optional."

In 2007, Indonesia's natural rubber output was 2,400,000 tons, is located in Thailand after the world's second largest rubber producing countries, Thailand's annual rubber output of about 3,100,000 tons.

On the market because of health concerns in the global economy, as well as the automobile industry and the decline in the demand for crude oil prices have fallen sharply, and so on, rubber prices have dropped to a low of the past two years, and in June this year, rubber prices had hit a record high.

Indonesia is expected this year will produce about 2,900,000 tons of rubber.

Thursday, Thai RSS3 rubber was quoted at 186 cents per kilogram, and in late June at 320 cents per kilogram.

Rubber International Union (International Rubber Consortium, IRCo) this week to discuss support natural rubber prices of specific measures.

The organization from the world's three major rubber producing countries - Thailand, Indonesia and Malaysia in 2001, the three countries accounting for the world's total rubber output of the supply of more than 70%.

Although the members of the IRCo officials declined to discuss the meeting. But market participants expected that the organization will discuss measures to intervene in the market, including possible measures to limit the supply of rubber in the international market in order to reduce excess capacity, to its inventory in order to rubber at higher prices when they sell again.

However, there is a market on Indonesia to cut rubber production project can really get the support of farmers and implementation.

Singapore, a spot dealer said, "small-scale farmers and growers need to survive, they need to pay bills, the need to support their families. Estimated that the majority of farmers will not really be 30% of the output cut."