Gapkindo warns of rubber price slide<\/p>\n
Adianto P. Simamora, The Jakarta Post, Jakarta<\/p>\n
The Indonesian Rubber Producers Association (Gapkindo) warned
\nthe rubber price would fall if Thailand sells its stockpile of
\n130,000 tons.<\/p>\n
\"If the government of Thailand sells its entire stockpile,
\nthere will be an abundant supply in the market and I predict it
\nwill force the rubber price down to 60 cents per kilogram,\"
\nGapkindo chairman Asril Sutan Amir told reporters on Friday.<\/p>\n
He said news that Thailand was starting to unload its
\nstockpile had weakened the rubber price in the past week to 75
\ncents, from the previous price of 89 cents per kilogram.<\/p>\n
Thailand's Deputy Agriculture Minister, Prapat Panyachatirak,
\nwas quoted by Reuters as saying it has sold off its stockpile of
\n130,000 tons of RSS 3 rubber sheet at $825 per ton.<\/p>\n
Asril admitted the association had not received any
\nconfirmation from the Thai government over the news.<\/p>\n
\"If this (sale) really happens, plans to prop up the rubber
\nprice to US$1 in September will be difficult to fulfill and it
\nwill add to the misery of (rubber) farmers,\" Asril said.<\/p>\n
He said that the sale would break an earlier deal signed by
\nThailand, Indonesia and Malaysia to form a cooperation to help
\nboost the rubber price to the $1 level, after the price plunged
\nto a 30-year low of less than 50 cents per kilogram late last
\nyear.<\/p>\n
The three countries are the world's top rubber producers,
\nwhich jointly account for around 85 percent of the world's
\nnatural rubber production.<\/p>\n
Asril said there was a temptation for the countries to sell
\ntheir rubber stockpiles as the price of the commodity had been on
\nthe rise recently.<\/p>\n
The three countries formed the International Tripartite Rubber
\nCouncil (ITRC) in December last year in Bali.<\/p>\n
Under the ITRC framework, the three countries have pledged to
\ncut rubber output by four percent and exports by ten percent
\nstarting this year.<\/p>\n
For 2002, Indonesia will lower its exports to 1.23 million
\ntons, while Thailand has set a limit at 1.93 million tons and
\nMalaysia will cap its export volume at 227,000 tons.<\/p>\n
In addition, the three countries also established a $225
\nmillion joint rubber consortium to buy rubber from the market in
\na bid to push up the price.<\/p>\n
Thailand, as the biggest rubber exporter, has agreed to
\ncontribute some $25 million; Indonesia, the second biggest rubber
\nexporter, will contribute $18.75 million; and Malaysia will give
\n$12.5 million.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/gapkindo-warns-of-rubber-price-slide-1447893297",
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