The International Tripartite Rubber Council (ITRC) consisting of Thailand, Indonesia and Malaysia has said it will cut exports of natural rubber (NR) by up to 300,000 metric tons in a bid to boost deflating prices.
Government ministers from the three nations met last week in Bangkok to address "the prevailing depressed NR price level" and said they will discuss the details of an Agreed Export Tonnage Scheme within two weeks.
However, they acknowledged that if discussions on March 4th 2019 suggest such a measure is not necessary, they will "hold off" on its implementation.
Collectively, the ITRC produces around 60 per cent of global rubber output and it is hoped that an improved price for natural rubber would ensure it remains attractive for smallholders to plant and harvest.
Prices have been improving since the middle of December 2018, the International Rubber Consortium notes, but remain lower than most producers would like.
The latest announcement is the sixth time the ITRC has announced plans for export restrictions and follows an agreement in 2017 that saw rubber exports slashed by 350,000 tons for three months.