The International Tripartite Rubber Council (ITRC) is planning another exports control to stabilise rubber prices, a Reuters report said. The council includes Thailand, Indonesia and Malaysia.
The ITRC said 2019 rubber production was expected to fall by 800,000 tonnes due to an outbreak of the Pestalotiopsis fungal disease, erratic weather conditions and sluggish tapping activities after a prolonged spell of low prices. The fungal disease has affected 380,000 hectares (939,000 acres) of rubber plantation in Indonesia, 52,000 hectares in Thailand and 5,000 hectares in Malaysia, the report said.
ITRC also fears that the disease can reduce production by 70% to 90%, the report said.
The ITRC reduced exports by 441,648 tonnes under the Agreed Export Tonnage Scheme (AETS) earlier this year, more than the targeted cut of 240,000 tonnes.