Wednesday, 11 June 2014

Myanmar’s rubber plantations facing losses due to price drop

A number of rubber plantations are operating at a loss due to falling price of natural rubber which drops to US$1,700 per ton this month from $2,600 at the end of 2013.

Rubber farmers have aired their grievances, particularly the widening deficit between production cost and selling price.

Farmers growing inferior rubber varieties are hardest hit by the price drop. Local rubber price hinges on the international price fluctuation. In booming market, rubber price used to soar to $3,000 per ton.

At present, local price for ribbed smoke sheet (RSS3) rubber is being quoted at $0.6 per pound, dropping from $0.7. This is for export-quality rubber.The lower grade is traded at $0.4.

The country exports rubber through border trade and maritime transport. The problem in volatile rubber market is exacerbated by the fact that the local rubber production is on the rise while the price is spiraling downward.

source: Eleven Myanmar
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