Council prepares sanction for cancellation of rubber contract

Thu, 12/08/2011 - 07:25
IN

The Asean Rubber Business Council (ARBC) has agreed to give sanctions to rubber buyers who unilaterally cancel purchase contract, Executive Director of the Indonesian Rubber Producers Association (Gapkindo), Suharto Honggokusumo.

 

He said that the move was part of efforts to help prevent rubber price from falling further.  The price of the commodity has plunged by about 39 percent since mid September amid concerns over the global economic slowdown.

 

ARBC groups rubber associations from six Southeast Asian countries.  The group met in Vietnam on December 3 to discuss ways to help prevent rubber price from falling further, Suharto said.  Among of the measures include the release of the blacklist of buyers, which have unilaterally cancelled purchase contract, in the respective websites of the associations.

 

He said that members of the ARBC have been advised to no longer conduct transaction with buyers which unilaterally canceled contract.

 

ARBC members also have agreed not to provide discount to buyers seeking to renegotiate contract, Suharto said. (rei)

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