INRO gets support from RI membership<\/p>\n
TOKYO (Bloomberg): Indonesia's decision to remain a member of
\nthe International Natural Rubber Organization, a price-supporting
\ncartel, should help keep the struggling group alive, an INRO
\nofficial said on Friday.<\/p>\n
"Indonesia must have realized that it will be much more
\nexpensive and much less efficient to go it alone rather than
\nsticking with INRO," said Arch Roberts, a buffer stock manager at
\nINRO.<\/p>\n
Indonesian Minister of Industry and Trade Rahardi Ramelan said
\non Wednesday it would remain a member of INRO, despite defections
\nfrom the group by Thailand and Malaysia, the first and the third
\nbiggest rubber producers, who are angered by a drop in rubber
\nprices that INRO failed to prevent.<\/p>\n
Thailand said last month it would pull out of INRO. Malaysia
\nleft the group last year. Thailand, Malaysia and Indonesia
\naccount for more than 80 percent of world rubber production.<\/p>\n
Thai rubber exports totaled US$1.8 billion in 1997, while
\nIndonesian exports reached $1.3 billion, according to the
\nInternational Rubber Study Group.<\/p>\n
Yoshikazu Hatta, a manager at Fuji Futures Corp. said
\nIndonesia remaining as a member with INRO is unlikely to help
\npush up rubber prices.<\/p>\n
"INRO will survive but it won't be able to support rubber
\nprices, because it hasn't been able to do so in the past few
\nmonths," Hatta said.<\/p>\n
Rubber futures in Tokyo have fallen 30 percent in the last six
\nmonths.<\/p>\n
The INRO group, which includes rubber producers and consumers,
\nuses funds provided by members to buy rubber on the open market
\nto support prices and releases supplies from buffer stocks when
\nprices rise too high.<\/p>\n
It's now short of money because some INRO members haven't paid
\ntheir dues this year. Roberts said members will lose their votes
\nunless they pay before the council meeting which takes place from
\nApril 20 to 23.<\/p>\n
INRO has collected 80 percent of consumer countries
\ncontributions since it called for the dues last December, but no
\nproducer countries have paid yet, he said.<\/p>\n
Thailand exported 1,837,100 metric tons in 1997, 41 percent of
\nworld exports, while Indonesia accounted for 31 percent.
\nMalaysia's rubber exports accounted for 13 percent, according to
\nthe International Rubber Study Group.<\/p>\n
On the Tokyo Commodities Exchange, rubber for August 1999
\ndelivery, the most active contract, fell 1.9 yen, or 2.35
\npercent, to 79 yen (67 U.S. cents) a kilogram.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/inro-gets-support-from-ri-membership-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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