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

  • Phnom Penh placed in two-week lockdown

    The government has decided to place Phnom Penh in lockdown for two weeks, effective April 14 midnight through April 28, as Cambodia continues to grapple with the ongoing community outbreak of Covid-19, which has seen no sign of subsiding. According to a directive signed by Prime Minister

  • Cambodia on the verge of national tragedy, WHO warns

    The World Health Organisation (WHO) in Cambodia warned that the country had reached another critical point amid a sudden, huge surge in community transmission cases and deaths. “We stand on the brink of a national tragedy because of Covid-19. Despite our best efforts, we are

  • Hun Sen: Stay where you are, or else

    Prime Minister Hun Sen warned that the two-week lockdown of Phnom Penh and adjacent Kandal provincial town Takmao could be extended if people are not cooperative by staying home. “Now let me make this clear: stay in your home, village, and district and remain where

  • Vaccination open to foreigners in Cambodia

    The Ministry of Health on April 8 issued an announcement on Covid-19 vaccination for foreigners residing and working in Cambodia, directing the Ministry of Labour and Vocational Training and local authorities to register them. Health minister Mam Bun Heng, who is also head of the inter-ministerial

  • Culture ministry: Take Tuol Sleng photos down, or else

    The Ministry of Culture and Fine Arts has told Irish photographer Matt Loughrey to take down the photos of Khmer Rouge victims at Tuol Sleng Genocidal Museum which he allegedly colourised and altered to show them smiling. The ministry said Loughrey's work is unacceptable, affecting

  • Cambodia gears up for muted New Year festival

    The recent curfew and restrictions imposed in the capital and other Covid-19 hotspots were intended to break the chain of transmission, Ministry of Health spokeswoman Or Vandine said as municipal and provincial authorities issued new directives banning certain activities during the upcoming Khmer New Year