Natural rubber production reduced in Asia region. (Corporate, Financial News).
The government of Thailand plans to reduce local rubber production by about 275,000 tons, or slightly more than 10% a year, to ease surpluses and improve prices. The first program aims to reduce up to 200,000 tons of rubber each year by encouraging and financing the replacement of rubber trees with other crops. The second program aims to decrease the rubber output by another 75,000 tons per year by felling rubber trees that are at least 25 years old on 250,000 to 350,000 rai in the south. The natural rubber policy committee will support planters in processing the felled trees into furniture. The reduction programs are in line with the country's commitment to the Tripartite Rubber Cooperation Group, which consists of Indonesia, Malaysia and Thailand. The group, which supervises rubber trade and production, planned to reduce output by 4% and export volume by 10% this year.
Three Indonesian state banks have agreed to finance retention of natural rubber to support a plan by the world's three largest producers to shore up sagging prices of that commodity in the world market. Thailand, Indonesia and Malaysia have agreed to reduce their exports by 10% of their average annual exports in the last four years under the Agreed Exports Tonnage Scheme. Indonesia says it would need approximately $60 million to finance the retention of around 1.231 million tons of natural rubber to meet the commitment of the three countries.
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|Comment:||Natural rubber production reduced in Asia region. (Corporate, Financial News).|
|Article Type:||Brief Article|
|Date:||Feb 1, 2002|
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