Rubber producing countries want to raise their profile

Rubber producing countries want to raise their profile

COONOOR, India (Dow Jones): The Association of Natural Rubber Producing Countries must shed its low profile role and become stronger and relevant in the rubber industry, ANRPC delegates said at a meeting in south India, one participant told Dow Jones Newswires.

The closed door meeting of ANRPC's executive committee was held Tuesday in Cochin where key issues facing rubber producers were discussed.

"Most of them agreed the low profile of ANRPC must get a facelift," the participating official said, not wishing to be named.

"Market intervention may not work in the liberalized economic scenario, but ANRPC can do other things like providing information and accurate statistics," the official said, outlining the deliberations that took place Tuesday.

Rubber producers and exporters have been hurt after the International Natural Rubber Organization, which was responsible for mitigating wild price swings in the physical rubber market, disbanded in October 1999. INRO must liquidate all its rubber stocks by June 30 this year.

"We have to find out other methods (in the absence of INRO) of supporting the market," the official said, "such as supply adjustments, long term projections and augmenting research and development."

The official said the members deliberated on the categorization of natural rubber as an industrial good in the World Trade Organization.

"Many argued that it (natural rubber) should be in the agricultural list, as agricultural goods have the advantage of safety nets," the official said. "Yet many members weren't too sure of the implications of the classification and said there should be a study of this rule."

Resolutions will be formally passed by ANRPC Thursday, the last day of the meeting, the official said.

There is a possibility that China is looking at joining the ANRPC, because two Chinese officials are participating in the meeting, the official said.

"They haven't (said) anything about joining, but one assumes it must be on their mind," the official added.

China, like India, consumes all the rubber it produces.

"China joining ANRPC will give strength to producer-consumer countries like India and Brazil," the official said.

Participants at the meeting comprise around 30 officials from member countries Indonesia, Malaysia, Singapore, Sri Lanka, Thailand, Vietnam and India.

Officials from Papua New Guinea and another member of the ANRPC, aren't attending.

Other than the two representatives from China, an observer from the International Rubber Study Group based in London is also participating as a nonmember.

ANRPC, an intergovernmental producers' body, is based in Kuala Lumpur.