Rubber growers seek flexibility
GROWERS have called for changes to the structure and buying policy of the International Natural Rubber Organisation (INRO) following a spate of low prices.
Producers are disappointed that, despite a 25% price slide, INRO has failed to intervene in the market and buy rubber to add to its buffer stocks.
INROs membership includes the Governments of Indonesia, Thailand, Malaysia, Ivory Coast, Nigeria and Sri Lanka on the producers side, and China, Japan, the US and the European Union on the importers side.
The organisation faces a dilemma. Even if it does intervene, it would not be able to provide enough support to put a floor in the market.
Thailand, one of the worlds leading producers of natural rubber, is thought to be debating whether to leave INRO.
- Financial Times 24/06/98 page 30