CNI News
13 March 2024
Although rubber produced from Mon and Karen States was being exported through border and seaborne trades in the past, at present because battles are breaking out along the roads going to border trades, exporting through the border has been suspended, according to rubber entrepreneurs.
The rubber produced from Mon, Karen and Tanintharyi Region is being exported to China, Thailand and other countries.
Exporting rubber through Chinese and Thai borders has not been okay. So, it is being exported through seaborne trade only reportedly. Although the global price of rubber has been high at present, because of transportation difficulties, the price of Myanmar rubber is falling, U Tun Min Naing, a rubber entrepreneur from Mon State, told CNI News.
" We exported rubber through both the border trade and the waterway. But border trade has been suspended. Moreover, because the export earnings policy has been often changed by the Central Bank of Myanmar, exporters don't buy rubber a lot anymore. Although the global price is high, the price within Myanmar is falling. So, we are in a very bad situation." he said.
While some rubber is being dried
Although rubber could be transported freely in the past, now checkpoints ask for documents regarding rubber and if the documents could not be shown, rubber could be seized or the checkpoints ask for some money. So, rubber traders and farmers are finding it difficult.
Because the rubber farmers have to pay the amount of money checkpoints ask, they have to sell their rubber at a lower price than it deserves, added U Tun Min Naing.
" In the past, according to the law, we could transport rubber freely. But now, when we transport rubber, if we can't show the full documents, our rubber can be seized. So, we have to pay at the checkpoints. In fact, farmers have to pay the amount of money that is paid on the way. The farmers have to be selling their rubber at a lower price than it deserves." he said.
Moreover, because the export earnings policy has been changed every so often in the current fiscal year, exporters are making a loss and rubber export has been reduced as well reportedly.
While rubber is being scraped
So, regarding rubber export in this fiscal year, it would not be in a position to export the target tonnage, U Khaing Myint, secretary of Myanmar Rubber Planters and Producers Association, told CNI News.
" It won't be in a position to export the target tonnage of rubber this fiscal year. According to the export earnings policy, exporters didn't make a profit, 80,000 tons of rubber could be exported in November, 2023. At that time, if you exported one ton of rubber, you would make a loss. Many exporters made a loss. So, as a pilot project, 70 percent of export earnings was allowed to be spent in order to import fertilizer from 1st December to 31st March. And then, exporters made a profit and rubber export has increased again." he said.
Although rubber entrepreneurs are trying in order to reach the global sales level, they have not been able to do so due to the political situations in Myanmar. Due to the decrease in rubber exports, domestic rubber prices are also decreasing.
Due to the decrease in rubber prices, rubber entrepreneurs are finding it difficult to increase the wages of rubber workers. Rubber workers went to Thailand and are working there because they can get higher wages.
So, Myanmar rubber industry would face scarcity of workers more in the coming rubber season and the productivity would be reduced, said rubber entrepreneurs.
