INRO warns of looming NR shortage

KUALA LUMPUR, Malaysia (Jan. 21)—Low natural rubber prices could cause a world shortage of NR in the next decade unless rubber producers and consumers act now to promote rubber planting and tapping, the International Natural Rubber Organization said in an official statement. "The right incentives should be in place to encourage investment in rubber cultivation," INRO told Asian news sources. Meanwhile, the price stabilization organization is preparing to liquidate its 138,000-metric-ton buffer stock, but market prices are too low to sell the inventory now, according to Clifford Raisch, assistant U.S. buffer stock manager. "We are continually monitoring what our liquidation procedures will do to the market," Raisch said. "Our main office is making sure we handle the liquidation without affecting the market adversely."