Rubber ministers discuss ITRCo management

Rubber ministers discuss ITRCo management

Dow Jones, Bangkok

Ministers from Thailand and Malaysia met late Thursday to discuss
appointing the management board for the rubber consortium, Thai
Deputy Prime Minister Pitak Intrawitayanunt told Dow Jones
newswires.

Pitak, along with Thai Agriculture and Cooperatives Minister
Chucheep Hansaward, met with Malaysian Primary Industries
Minister Lim Keng Yaik at a dinner meeting Thursday in Bangkok.

Indonesia's Minister of Trade and Industry Rini M. Soewandi
was unable to attend the meeting due to the cancellation of her
flight caused by a technical problem with the plane.

Earlier this month, Thailand, Indonesia and Malaysia signed a
memorandum of understanding to formally establish the
International Tripartite Rubber Corp., or ITRCo, which will buy
and stockpile rubber to help shore up prices.

ITRCo's management board will look at details of the
consortium's functions, particularly on how it will buy and
stockpile rubber, how much rubber it will buy and at what price.

The committee will comprise nine representatives from the
three countries. Thailand, as ITRCo's major shareholder, will
name four representatives, while Indonesia will name three and
Malaysia will name two, Pitak said.

However, after the meeting, Pitak said the ministers agreed
that each country will initially name two representatives and the
others later. The three countries are considering the
representatives, Pitak said.

The ministers also reaffirmed at the meeting the plan to cut
rubber supply and exports by 4 percent and 10 percent
respectively, Pitak said.

"We will next week send letters to officially inform Thai
exporters about the export cut plan," Pitak said. This is to
ensure that the plan will be carried out even though Thai rubber
exports this year are unlikely to exceed the level agreed on
under the plan, he added.

Under the plan, Thailand pledged to export no more than 1.973
million tons of rubber this year.

Thailand will also reduce areas planted with rubber trees by
350,000 rais (6.25 rais=1 hectare) under the plan to cut supply.

Ministers also discussed possible cooperation in the rubber
glove business in an attempt to boost rubber glove prices, which
are now lower than the cost of production, Pitak said. He didn't
elaborate further, however.

Thailand is the world's largest rubber exporter, followed by
Indonesia and Malaysia.