Bangkok--15 Sep--การยางแห่งประเทศไทย
The Ministers in-charge of the rubber industry from Thailand, Indonesia and Malaysia attended the Ministerial Committee (MC) Meeting of the International Tripartite Rubber Council (ITRC) in Bangkok, Thailand on 15 September 2017.
The Meeting was chaired by H.E. General Chatchai Sarikulya, Minister of Agriculture and Cooperatives of the Kingdom of Thailand and attended by H.E. Enggartiasto Lukita, Minister of Trade of Republic of Indonesia and H.E. Datuk Seri Mah Siew Keong, Minister of Plantation Industries and Commodities of Malaysia. This Meeting was also attended by senior officials from Thailand, Indonesia and Malaysia as well as the Board of Directors of the International Rubber Consortium Ltd. (IRCo).
The Ministerial Committee Meeting is an annual forum to meet and discuss issues related to sustainable development of the natural rubber (NR) industry. The Ministers took the opportunity to deliberate on measures towards strengthening NR prices for the wellbeing of NR smallholders and betterment of NR industry in general. The Meeting also focussed discussion on issues related to NR prices, prevailing market sentiment and new areas to strengthen cooperation under the framework of ITRC.
- The Ministers noted that the NR prices in the second quarter of 2017 were not reflective of the market fundamentals. The prices were not reflective of the strong demand, and reduction in supply contributed by erratic weather patterns and smallholders switching to other crops or other economic activities. The Ministers were encouraged by the recent improvement in NR prices contributed by among others, dissemination of relevant information. ITRC will continue to provide regular updates on NR market fundamentals.
- The Ministers noted that NR has proven to be a reliable and unique material for various industries. The 3 Member Countries are implementing systematic planting of the crop through Supply Management Scheme (SMS) to ensure sustainable supply of NR for consumers. The Ministers took note of the performance of SMS implementation from 2007 – 2016 to ensure sustainable supply of NR for consumers. The Ministers also agreed on the proposed SMS programme for the period of 2017 – 2025 to achieve long term equilibrium in NR demand and supply.
- The Ministers took note of the impact and performance of the implementation of the 4th Agreed Export Tonnage Scheme (AETS) from 1 March – 31 December 2016. The 4th AETS has contributed towards addressing the downward trend of NR prices.
- The Ministers also discussed the future direction of ITRC Regional Rubber Market (RRM) as a platform for better price discovery for both dry and wet rubber. The RRM will be developed as a futures market. To complement and support the operation of RRM, the Member Countries will establish IRCo Arbitration Centre.
- The Ministers took note of the efforts to increase NR domestic consumption by 10% annually. The focus will be in sectors such as transportation, infrastructure, sports, defence, health and consumer goods. TIM will provide various incentives to increase NR usage, intensify R&D and promote innovation in both public and private sectors. In addition, TIM has agreed to exchange technology and expertise in the use of NR for new road construction and resurfacing existing roads.
- The Ministers welcomed Viet Nam as a Strategic Partner under the framework of ITRC. The participation of Viet Nam will further enhance ITRC's role in ensuring sustainability of rubber industry.
- The Ministers agreed that TIM explore new areas of cooperation towards ensuring the resilience of the NR industry and generating remunerative income to NR smallholders in the longer term. These will include Roundtable Discussion with the major rubber industry associations back-to-back in future MC meetings.