Malaysia, Indonesia and Thailand have taken two measures that will withdraw a total of 450,000 tonnes of natural rubber (NR) from the market in order help the rubber price recover.

In a joint statement, the countries said they had finalised the mechanism for the implementation of Agreed Export Tonnage Scheme under which they would withdraw exports of 300,000 tonnes of NR.

The statement said the countries also agreed to accelerate the replanting programme of 100,000 hectares which would result in a further reduction of exports by 150,000 tonnes.

"We are optimistic with joint implementation of these measures, the rubberv price will recover and continue to be fair and remunerative to all smallholders and other stakeholders in the natural rubber industry," it said.

The statement said the implementation would be closely monitored by the International Tripartite Rubber Council (ITRC) Monitoring and Surveillance Committee.

It said the three countries were concerned about the recent drop in NR prices which had a direct effect on the income of their rubber smallholders.

"This is despite the fact that the demand for natural rubber remains strong with low stock level," it said.

The drop in price was mainly contributed by negative market sentiment caused by various other factors including uncertainties in global economic growth, it said. -- Bernama