Farmers see price bounce in rubber

Farmers see price bounce in rubber

Farmers and government officials are anticipating a rubber price increase this year as neighbouring nations move closer to capping exports of the commodity.

Ly Phalla, director general of the general directorate of rubber plantations at the Ministry of Agriculture, Forestry and Fisheries, said he expected prices to bounce back in 2015 as Thailand, Indonesia and Malaysia – the top three producers of the commodity – lead a regional effort to taper supply.

“We are optimistic that rubber prices will increase early this year due seasonal changes, and because the issue of over supply in the market has been somewhat solved by the major countries reducing thier exports,” he said.

Sliding natural rubber prices last year prompted the governments of Thailand, Indonesia and Malaysia, with additional help from Cambodia, Laos, Myanmar and Vietnam, to take joint action to reduce supply.

The seven countries, which account for more than 70 per cent of global natural rubber production, met in October to discuss the exports cap. Another regional meeting on the move is expected in February.

“We try to up the price of rubber to $2,000 to $2,200 per tonne so that our farmers will be better off,” Phalla said.

Phalla added, however, that prices will likely not recover to 2011 levels, when the commodity reached $4,000 per tonne on international markets and about $3,000 per tonne in Cambodia.

Currently, rubber is trading at about $1,600 per tonne, according to the Malaysian Rubber Board. But locally the commodity is being purchased for less than half that.

Seang Sarat, vice president of the Rubber Farmers Association in Memot of Tbong Khmum province, said he can sell his natural rubber for only $700 per tonne, well below 2013 prices of $2,000 per tonne.

“In general the price of rubber is always higher from December to March,” he said.

“Just recently, traders from Vietnam promised that the price of rubber will increase by $100 or $200 per tonne from mid-February,” he added

Kim Chheang, a rubber farmer with 100 hectares in Mondulkiri province, said that price of rubber in his area remained at about $625 per tonne.

“It is not a profit rate and it is just harvested to paid for labour costs,” he said.

“I just hope and wish the price is higher, otherwise we cannot work on it anymore,” he added.

MOST VIEWED

  • Proof giants walked among us humans?

    For years a debate has waged about whether certain bas relief carvings at the 12th-century To Prohm Temple, one of the most popular attractions at the Angkor Wat Temple Complex in Siem Reap province, depicted dinosaurs or some rather less exotic and more contemporary animal,

  • New US bill ‘is a violation of Cambodian independence’

    After a US congressmen introduced bipartisan legislation that will enact sanctions on Cambodian officials responsible for “undermining democracy” in the Kingdom, government officials and the ruling Cambodian People’s Party on Sunday said they regarded the potential action as the “violation of independence and sovereignty

  • Long way to go before Cambodia gets a ‘smart city’

    Phnom Penh, Siem Reap and Battambang will struggle to attain smart city status without adopting far reaching master plans, according to officials tasked with implementing the program. The brainchild of the Association of Southeast Asian Nations (Asean), the smart city program seeks to link up

  • Japan bank buys major stake in ANZ Royal Bank

    Japan's largest bank acquired more than half of ANZ’s shares in Cambodia on Thursday, according to a statement from Kith Meng’s Royal Group. Japan's JTrust Bank, announced that they had acquired a 55% of stake in ANZ Royal Bank. According to a Royal Group