CNI News

11 Nov 2022

The demand for rubber in the domestic market has grown recently, increasing the prices, according to plantation owners and entrepreneurs.

In recent days, the prices of rubber have risen to MMK 1,330 per Lb, Ma Ei, a rubber grower in Dawei Township in Tanintharyi Region, told the CNI.

She said, “Rubber prices have increased a little during recent days because of the growing demand. When the market opened this week, the prices rose from MMK 1,250 to 1,330 gradually. At this time of the year, we can collect a large volume of latex. So, the prices do not normally rise during this season. However, rubber prices are fluctuating wildly this year. Last week, rubber prices fell dramatically and we could not get profit due to higher production costs. So, we just stored our rubber. Now, we are selling our stocks as the prices have increased,”

 Drying raw rubber. (WWF)

Rubber prices in Myanmar change based on prices in the international rubber market and US$ exchange rates in the market, according to rubber entrepreneurs.

The current growing demand for rubber was attributed to entrepreneurs and merchants who store rubber.

However, some rubber merchants are trying to purchase rubber from growers at lower prices due to higher labour and processing costs resulting from skyrocketing fuel prices, U Phone Myint, a rubber entrepreneur from Paung Township in Mon State, told the CNI.

He said, “ Compared with the previous year, the prices have risen by MMK 200 per Lb. However, labour and fuel costs have risen significantly. So, buyers were forced to purchase rubber from plantation owners at lower prices. They set the purchasing prices at MMK 1,100 per Lb to save MMK 200 for them.

 Transporting rubber raw materials. (WWF)

As the cultivation of rubber has increased this year, rubber exports are likely to rise, Secretary U Myint Khaing of the Myanmar Rubber Planters and Producers Association told the CNI.

He said, “It is difficult to predict exactly due to frequent changes of policies. However, rubber yields have increased due to newly matured plantations. I think rubber exports will grow significantly. Our country has 850,000 acres of rubber plantations we have already collected latex. Now, there are another 850,000 acres of rubber plantations we can start collecting latex. So, the yields will be higher thanks to newly matured plantations."

Rubber trees are mainly grown in Mon State, Tanintharyi Region and Shan State in Myanmar.

Myanmar grows rubber trees on 1.6 million acres of land and latex has already been collected from about 850,000 acres.