Rubber producers, users to decide on INRO fate<\/p>\n
KUALA LUMPUR (Reuters): Rubber producing and consuming
\ncountries will meet in the Malaysian capital next week with the
\noutcome likely to determine the future of the International
\nNatural Rubber Organization (INRO).<\/p>\n
Industry sources said it will be a crucial meeting to prevent
\na collapse of the world's only surviving producer-consumer
\ncommodity grouping.<\/p>\n
"It will be crucial in that sense," a Malaysian official said.<\/p>\n
Various committees within the organization will meet on
\nTuesday and Wednesday before full council talks on October 22 and
\n23.<\/p>\n
"Important matters will be raised. It can be crucial," INRO
\ndeputy executive director Gerard Loyen told Reuters.<\/p>\n
INRO runs a serious risk of foundering due to mounting
\nopposition from producing countries over its failure to boost
\nprices.<\/p>\n
INRO intervenes in the rubber market by buying or selling when
\nthe price reaches pre-set levels and the price range is revised
\nperiodically in line with market trends.<\/p>\n
But prices have suffered relentless pressure from tumbling
\nconsumption due to the Asian economic crisis and rising exports
\nfrom Thailand and Indonesia where producers have cashed in on
\nhigh local prices driven by depreciating currencies.<\/p>\n
Malaysia, the world's third largest producer, has vowed to
\nleave INRO, while top producer Thailand has said it is likely to
\nfollow suit. But Indonesia, the second largest producer, has
\npledged to stick by the accord.<\/p>\n
Analysts said if Malaysia and Thailand were to leave, it could
\nlead to INRO's demise because they hold a big chunk of votes on
\nthe producing countries' side.<\/p>\n
INRO, which was set up in 1980 under the United Nations
\nConference on Trade and Development (UNCTAD), groups six rubber
\nproducing and 16 consuming countries.<\/p>\n
The producers are Thailand, Indonesia, Malaysia, Ivory Coast,
\nNigeria and Sri Lanka. Consuming members are the United States,
\nJapan, China, Germany, France, Austria, Belgium plus Luxembourg,
\nDenmark, Finland, Greece, Ireland, Italy, the Netherlands, Spain,
\nSweden and Britain.<\/p>\n
The rubber body expects some progress to be made during the
\nmeeting to heal the rift.<\/p>\n
"We look forward to some kind of progress through measures to
\nbe proposed and discussed at the meeting. We expect both
\nexporters and importers to be positive to reach a consensus,"
\nLoyen said.<\/p>\n
INRO in its latest newsletter urged both rubber producing and
\nconsuming countries to work together with the organization and
\n"not without INRO".<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/rubber-producers-users-to-decide-on-inro-fate-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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