Logo of Phnom Penh Post newspaper Phnom Penh Post - Government fails to recoup on rubber expenses

Government fails to recoup on rubber expenses

A worker collects coagulated latex at a rubber plantation in Kampong Cham’s Memot district in 2014.
A worker collects coagulated latex at a rubber plantation in Kampong Cham’s Memot district in 2014. Heng Chivoan

Government fails to recoup on rubber expenses

Despite a 31 percent increase in Cambodian rubber exports during the first 11 months of this year, the Ministry of Agriculture is failing to recoup on expenses it has spent sending expert technicians into the field in order to help boost production.

According to data from the Ministry of Agriculture, the government has spent $379,000 so far this year on technical support for rubber farmers and plantations, and has received only $299,000 back through revenue generated primarily through land rental fees.

Meanwhile, Cambodia’s rubber sector showed accumulated revenue of $249 million during the period by exporting 152,962 tonnes.

Khoun Phalla, a director of the rubber department at the Ministry of Agriculture, said that the government has established five teams of rubber experts that have been deployed across the country.

“We have helped the price of rubber,” he said. “It is now better for small-scale farmers.” Phalla added that the ministry’s experts have shown farmers how to increase yields at lower costs.

“What we have spent so far will be returned through higher profits from rubber farmers and that will eventually promote government revenue,” he said.

However, Hang Sreng, director of rubber exporter Long Sreng International, said that despite the government’s expert teams, the rubber sector would remain largely unprofitable unless the government scraps taxes.

“We do not make profits from rubber because we have to pay a lot of taxes and fees to the government and that makes us unable to compete,” he said. “The specialists have helped with efficiency, but that is not enough.”

MOST VIEWED

  • Breaking: US House passes 'Cambodia Democracy Act'

    The US House of Representatives in Washington, DC, on Monday, passed the “HR 526 Cambodia Democracy Act”, also known as the Cambodia Democracy Act of 2019. If signed off by the president, the bill will allow two major sets of action to be taken against high-ranking Cambodian

  • ‘Zero-dollar’ tours under fire

    Minister of Tourism Thong Khon has blamed “zero-dollar” tour operators for the decrease in foreign tourists to Angkor Archaeological Park in the first half of this year and has called for action against them. Angkor Archaeological Park received 1.24 million foreign visitors in the first half

  • Breaking: Rubbish found packed inside 83 containers at S'ville port

    Eighty-three containers packed with rubbish were broken open at Sihanoukville Autonomous Port by joint authorities on Tuesday. The origin of the containers has yet to be ascertained, Ministry of Environment spokesman Neth Pheaktra said. Pheaktra, who is also the ministry’s secretary of state, said

  • VIP prison scrapped amid much criticism

    The Ministry of Interior announced on Thursday that Cambodia’s first privately run prison, which was to allow prisoners with enough money to upgrade to more comfortable cells, has been scrapped. Ministry spokesman Khieu Sopheak said studies had found that no other country in the