By the BBC's Phil Mercer in Bangkok

The world's biggest rubber producers have signed a trade agreement aimed at boosting prices to help struggling farmers.

Indonesia, Malaysia and Thailand have formed the International Tripartite Rubber Corporation in an attempt to regulate prices by controlling supply.

Critics claim the venture is likely to fail because insufficient funds have been allocated to it.

Indonesia, Malaysia and Thailand control more than two thirds of the world's trade in rubber.

Guaranteed income

There has been growing concern over the impact falling prices have had on more than 10 million farmers.

The new alliance, unveiled at a summit in Bali, hopes to guarantee these smallholders a minimum income through market management.

The economic principles are simple enough - through the International Tripartite Rubber Corporation, the three south east Asian countries will buy supplies on the worldwide markets.

This would reduce supply and, in theory, drive up prices.

The corporation also aims to step in to buy rubber from the region's farmers if prices fall below a certain level.

Mixed reaction

It is another attempt to exert more control over the international rubber trade.

In December, the major producers agreed to cut exports by 10% with further reductions over the next two years.

Thailand's prime minister, Thaksin Shinawatra, said the alliance would strengthen the economies of all three countries.

The latest moves have not satisfied everyone - many traders across south east Asia have said that not enough money is being invested in the consortium.

One leading dealer in Singapore said so far $3m had been allocated.

To efficiently support the market, he insisted, required at least $200m.