Exporters to Keep Buying Natural Rubber from Farmers

Selasa, 28 Agustus 2012 | 09:29

Exporters will keep buying natural rubber from farmers although Indonesia will reduce 100,000 tons of supply to global market to recover the commodity price.Indonesian Rubber Producers Association (Gapkindo) chairman Asril Sutan Amir said Thailand, Indonesia, and Malaysia finally agreed on export cut formula as much as 300,000 tons this year.

The formula refers to 3:2:1 ratio between Thailand, Indonesia, and Malaysia. Thus, Thailand will reduct 150,000 tons of export, Indonesia 100,000, and Malaysia 50,000 tons.

The same ratio will be also applied to rubber rejuvenation on 160,000 hectares land. “However, we will keep buying and storing it in form of ribbed smoke sheet and crumb rubber, it could last 2 – 3 months,” he said, Monday (8/27/2012).

According to him, the rubber price which weakened in recent months made farmers reduce the tapping from two times a day to once a day.

Asril who is also the Director of PT Batanghari Tebing Pratama said the company usually receives tapped 60 - 100 tons of sap a day, but now only 20 – 30 tons a day. "It’s reduced because prices are not attractive to farmers. With low prices, farmers didn’t want to tap," he said. (T07/aph)

by Sri Mas Sari
source http://en.bisnis.com