Indonesia is seeking partnership with fellow rubber producer Thailand due to plummeting prices facing the country and the European Union’s rollout of an anti-deforestation law.

Thailand and Indonesia are the world’s top two rubber-producing nations who are facing similar situations, said Indonesian Trade Minister Zulkifli Hasan at a press conference following a meeting with Thai House Speaker Wan Muhamad Noor Matha. Problems come one after another from the falling prices of rubber to the commodity being subject to the EU Deforestation-Free Regulation (EUDR).

Zulkifli said rubber prices have declined sharply. The rubber leaf fall disease also dealt a fatal blow on the production, making it difficult to propel prices to a remunerative level, the minister added.

Dropping prices might prompt rubber farmers to shift to other crops, resulting in a tight supply of natural rubber in the future, according to Zulkifli.

He called for collaboration between the members of the International Tripartite Rubber Council (ITRC), namely Thailand, Indonesia, and Malaysia. The council, which accounts for 58% of global rubber production, pursues fair and remunerative prices for the smallholders.

The ITRC also works alongside other rubber exporters, including Vietnam and the Philippines, to increase prices, he noted./.

Source: Vietnam News Agency