INRO postpones council meeting

INRO postpones council meeting

KUALA LUMPUR (Reuters): The International Natural Rubber Organization (INRO) said on Thursday it has postponed a meeting of its governing council to Oct. 9 after the group could not decide on the sale of its rubber stocks.

"No consensus could be reached," chief executive officer Arch Roberts told reporters after an INRO council meeting in Malaysia's capital.

Asked when the council would next meet, Roberts said, "We are planning for October the ninth, but some members have to check to make sure that's an acceptable date."

INRO's governing council was earlier scheduled to decide on Thursday what to do with 138,000 tons of rubber in its stockpile. Sales have been undermined because of the high purchase price of the stockpiled rubber.

INRO's cost price stands at 71 U.S. cents a kg but current prices in top producing countries Thailand, Indonesia and Malaysia are much cheaper.

The group's failure to reach an agreement means that last year's resolution on liquidation is still valid.

INRO's decision-making council decided that in liquidating its stocks, it would not sell rubber at a price below the purchase and carrying costs. The council is made up of representatives of consumer and producer member countries.

Delegates from Thailand, Indonesia and Malaysia had said INRO needed to review last year's decision and reduce the selling price in order to speed up the sales.