KUALA LUMPUR: To strengthen its rubber industry, Malaysia is participating in two international cooperations, namely the International Tripartite Rubber Council (ITRC) and the Association of Rubber Producing Countries (ANRPC).
In a written parliamentary reply, Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani said the ITRC, established in 2002, comprises three major rubber-producing countries; Thailand, Indonesia, and Malaysia.
"Its primary objective is to ensure that smallholders and natural rubber producers receive fair and remunerative prices.
"To achieve this, the ITRC has implemented two market intervention mechanisms namely the Supply Management Scheme and Agreed Export Tonnage Scheme, which aim to stabilise rubber prices, ensuring that smallholders benefit optimally," he said in response to Manndzri Nasib (BN-Tenggara).
Manndzri inquired about collaborations with the world's major rubber-producing countries aimed at stabilising rubber prices and promoting the use of natural rubber among these countries.
Johari said the ITRC has also introduced the Demand Promotion Scheme to encourage and promote rubber consumption, with the goal of reducing market surplus.
"However, the effectiveness of the DPS has been limited in promoting local consumption, primarily due to profitable export demand."
On the ANRPC, formed in 1970, Johari said it is a cooperative effort among the world's major natural rubber-producing nations, helping member countries address various challenges in the rubber industry.
ANRPC comprises 13 producing countries that contribute 85 per cent of the world's natural rubber production, including two consumer countries, China and Singapore.
"Currently under discussion is the Livelihood Rubber Price Mechanism (LRPM), aimed at establishing a "floor price" for rubber to support smallholders' livelihoods. The mechanism is nearing the final stages of approval from all member countries."
Johari said under LRPM, the price of natural rubber will take into account the actual production costs, aiming to provide smallholders with the opportunity to enjoy better and more profitable prices.
"The implementation of the LRPM is a crucial step in ensuring the long-term sustainability of the natural rubber industry. This will guarantee more stable incomes for rubber producers and benefit all parties involved in the entire value chain of the rubber industry," he said.