Rubber price drops after export ban to China

Independent Mon News Agency

April 7, 2005

After Burma’s military regime SPDC banned rubber export to China, the rubber price has decreased down and thousands of rubber compound sheets have left in the traders’ stores, according to Mr. Nai Plai, a Mon State local rubber exporter to China.

The rubber price has decreased since last September (in 2004) and the current a drought compound rubber sheet price is 430 Kyat per pound (~ 0.5 US Dollar). It was 540 Kyat per pound in mid-2004, he added.

Although China required a half million pounds of rubber from Burma to export in 2004, but Burma only could export 300, 000 Pounds. The rubber compounding factory in Thanbyuzayat, in Mon State, can produce 110, 000 pounds each year for export to China, said a retired Township agriculture manager.

Among 11, 000 acres of rubber and orchard plantation which were confiscated by the Burmese Army in Mon areas, about 60 % of these plantation are grown with rubber. The troops did not allow villagers to collect rubber latex in the confiscated rubber plantations, according to information for a report produced by Human Rights Foundation of Monland.

There is also a labour shortage problem in Mon areas and the plantation owners also have to pay high price for day-labourers to work in their plantations. Many skillful Mon farmers and workers migrated to Thailand where they can seek better income created labour shortage problem in Mon areas.

Normally, the traders also sold the rubber compound sheets, which have remained in their hands to Myanmar Perennial Crops Enterprise (MPCE) in the past. According to Nai Plai, the SPDC also closed down the department of Myanmar Permanent Crops Enterprise and traders have no place to sell their products.

When the Former Prime Minister Lt. Gen. Khin Nyunt was in power, the rubber export to China was in good condition and traders could make profit. But after he was dismissed from power, the trade relationship between two countries has been slowed down, analyzed by Mr. Blai.

The traders also disappointed with many checkpoints (set by SPDC authorities and Burmese Army) along the exporting route to China and they levied many taxes. Exporting rubber under the regime’s rules would not get much profit like black (illegal) market export because of taxation, explained by that trader.

According to the trader, the SPDC permitted freely exports of rubber and sugar to foreign countries last year, but they have to pay a lot of taxes this year and more check-points they have to cross.

Rubber plantation owners, who have good family business wait for until the price of the rubber increased to sell their products but the poor families who have small plantation have to sell their products to get money for the survival of their families, even the price is cheap, said a rubber plantation owner, Mr. Nai Maung Kyin.

In Mon State, there are approximately 120, 000 acres of rubber plantations and the rubber trees are also grown in Tenasserim (Tanintharyi) Division, Karen State, Arakan (Rakhaing) State, Shan State and Kachin State. The SPDC is also planning to extend rubber agriculture program in countrywide, and they will assist farmers who want to plant rubber, announced on the State controlled media, Myanmar Television.

In spite the government announced to extend rubber planting program, on the other hand, the Burmese Army has taken many Mon people’s rubber plantations in Mon areas such as in Ye, Thanbyuzayat and Mudon Townships.

----------------------------------------------------------------------------------------------------

For further information, please contact to Independent Mon News Agency

E-mail [email protected], [email protected]

www.monnews-imna.com

Tel: 66 (0) 9 5494 296