The International Tripartite Rubber Council (ITRC) '€” which consists of the world'€™s top three rubber-producing countries, Indonesia, Malaysia and Thailand '€” met on Thursday to discuss efforts to maintain price stability and boost rubber consumption.

Indonesian Trade Minister Thomas Lembong, Thai Agriculture and Cooperative Minister Gen. Chatchai Sarikulya and Malaysian Plantation and Commodity Minister Datuk Amar Douglas Uggah Embas attended the meeting.

The ITRC'€™s meeting in Jakarta discussed the three ASEAN countries'€™ commitment to efforts to maintaining a global supply-and-demand balance amid a price slump and low production in the three nations, according to Bachrul Chairi, director general for international trade cooperation at the Trade Ministry.

'€œThe three producing countries are committed to maintaining balanced rubber supply and demand,'€ Bachrul said on the sidelines of the 2015 ITRC ministerial committee meeting, as quoted by Tempo.co.

Indonesia, Thailand and Malaysia supply 67 percent of the world'€™s rubber.

Indonesia'€™s rubber production this year dropped to only around 3.1 million tons from between 3.5 and 3.8 million tons in previous years.

This is expected to help prop up global rubber prices, given the country'€™s share of global rubber production.

The meeting also discussed efforts to revive rubber prices. '€œThe producing countries will try to find solutions so as to maintain
rubber prices above a level that is beneficial for farmers who make a living out of this sector,'€ Bachrul said.

It sought to draw up action plans that will be prioritized by the three countries, including partnerships in research and development to diversify rubber-based products.

'€œInnovative breakthroughs continue to be made to raise domestic consumption by 10 percent per year,'€ he explained, adding that rubber-based products would be expanded not only to cover vehicle tires but also dock fenders, asphalt mix, water gate components and aircraft tires.

Next year, the ITRC will also launch a regional rubber market, merging the rubber exchanges of the three countries.

'€œWith the regional market, the formation of prices will be more transparent, and the prices will reflect the market situation and conditions,'€ Bachrul said.

The three producing countries have also welcomed neighboring Vietnam'€™s intention to join the ITRC.

With Vietnam on board, the ITRC'€™s production will account for 76 percent of the total global supply.

'€œCertainly, this is a great move to strengthen the position of [rubber] producing countries,'€ he hoped.

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