Supply cut likely to raise natural rubber prices in Indian markets

The supply control is set to help raise prices of natural rubber

Battered by a sustained decline, three of the world’s leading natural rubber producers – Thailand, Indonesia and Malaysia – have decided to trim supply to help escalate prices in the international markets.

In a meeting of ministers of these countries in Bangkok, the three nations decided to reduce their natural rubber supply to the world by up to 300,000 tonnes. The three nations comprise nearly 90 per cent of the natural rubber production, most of which gets exported to numerous countries, including to India.

The move by the trio is similar to what happens in crude oil production where supply is controlled