Monday, November 10, 2008

Thailand to Cut Rubber Production 50% in Six Months

Thailand Ministry of Agriculture & CooperativesThailand, the world's largest rubber producer, said Monday for the protection of rubber prices, Thailand will start the reduction of 700,000 tons of rubber production in the next 6 months.

Saenkaew, the Minister in charge of rubber Affairs from the Ministry of Agriculture & Cooperatives said Thailand plans to cut 50 percent of rubber production during this period and encourage farmers to reduce the tapping.

It is understood that the reduction decision is based on the output of 1.4 million tons from October 2007 to March 2008. The reduction of output is equivalent to 23 percent of forecast for 2008 which is 3.1 million tons. Thailand's rubber production in 2007 are 3.0 million tons.

Saenkaew said that as a part of reduction plan, Thailand will also reduce the the trading day of domestic rubber trading center. The trade Day is expected to reduce to 2-3 days a week, in response to the drop in supply.

At present, the international benchmark --- Thai RSS3 rubber price Monday reported that 1.85 U.S. dollars per kilogram, while in July this year, the price had hit 56-years record high of 3.25 U.S. dollars per kilogram. In the face of the global financial crisis, Thailand, Malaysia, Indonesia are under attack, and the consumers should keep cautious sentiment.

Originally Posted: China Business Daily
Author: Angulo Fu