KUALA LUMPUR: The International Tripartite Rubber Council (ITRC), in a recent meeting, reiterated the importance of the Agreed Export Tonnage Scheme (AETS) implementation as an effective instrument to address the transient stock imbalance from the global market.
In June 27 meeting held at Krabi, Thailand, it confirmed that the implementation of the scheme in member countries are in order as all related domestic procedures and arrangements have been finalised and in place.
The meeting also discussed the current global natural rubber (NR) fundamentals under ITRC schemes, namely the Supply Management Scheme (SMS), Demand Promotion Scheme (DPS) and AETS.
ITRC was pleased with the compliance of export cutback in April and May 2019 under the 6th AETS implementation.
This had and would contribute to improving the global rubber market and positively impact the wellbeing of rubber smallholders through the improvement of NR prices, it said in a statement yesterday.
During the meeting, attended by officials from Malaysia, Thailand and Indonesia, it said the prevailing Natural Rubber (NR) fundamentals, in particular, the production from member countries and efforts to ensure a healthy supply of NR to meet its demand in the global market was also previewed.
It noted that the NR production in ITRC member countries is expected to decrease this year.
The production, it said would continue to be affected negatively due to the outbreak of “Pestalotiopsis†disease which had damaged rubber trees in many plantations in Sumatera and has now started to appear affecting rubber trees in Malaysia.
Prevailing low NR prices has caused smallholders to reduce maintenance cost by neglecting good agricultural practice (GAP) and this contributes to the outbreak of Pestalotiopsis disease.
Besides, the erratic weather conditions and low tapping activities due to the prolonged low prices will continue to affect NR production, ITRC explained.
Hence, ITRC emphasised the urgency of a timely solution to stop a further decline of NR production and the income of smallholders.
In view of the severity of the disease impacting the potential production, a further assessment of the total area affected is still undertaken by member countries, it added. — Bernama
Source: The Borneo Post