By Kay Kimsong
THE CAMBODIA DAILY
The international price of rubber has fallen dramatically over the last six months, but Cambodian officials said Friday that the domestic rubber industry should be able to weather the storm.
The price of rubber was $2,758 per ton in Bangkok at the end of June and $1,673 at the end of this week, a 39 percent decline. Rubber is also down 34 percent in Kuala Lumpur, according to the International Rubber Board. Agriculture Minister Chan Sarun said that large stocks in China, the principal end-market for Cambodian rubber, have caused the local price to fall, but in the long-term rubber will be more lucrative than rice farming here.
"The ministry's policy is to urge local farmers, investors, and foreign investors to plant rubber on family land and state land concessions," he said, adding that annual sales of rubber products in Cambodia topped $25 million last year with 50,000 hectares under cultivation.
Some major rubber producers agreed. "It would not be a problem, if the price keeps above $1,000 per ton," said Tai Seng, the owner of a 2,300-hectare plantation in Ratanakkiri province. He said Vietnamese buyers are offering $1,500 this month down from $2,600 in July.
"My workers have a high standard of living now," he said, adding that he pays his workers between $366 to $487 per month.
Local growers are being paid about $1,050 per ton for rubber that Tai Seng resells to Vietnam.
Men Siphan, director-general of the state-owned Peam Chaing rubber plantation in Kompong Cham province, also reported a 40 percent decrease in prices.
His 1,400 workers are paid $170 to $195 per month, he said. "I don't see any problem," he added. "I am sure that rubber workers and exports will continue to be good in the long run."
The draft 2007 budget law anticipates declining tax revenue from rubber exports, down 10.4 percent to $4 million in the coming year.
(Additional reporting by Erik Wasson)
The price of rubber was $2,758 per ton in Bangkok at the end of June and $1,673 at the end of this week, a 39 percent decline. Rubber is also down 34 percent in Kuala Lumpur, according to the International Rubber Board. Agriculture Minister Chan Sarun said that large stocks in China, the principal end-market for Cambodian rubber, have caused the local price to fall, but in the long-term rubber will be more lucrative than rice farming here.
"The ministry's policy is to urge local farmers, investors, and foreign investors to plant rubber on family land and state land concessions," he said, adding that annual sales of rubber products in Cambodia topped $25 million last year with 50,000 hectares under cultivation.
Some major rubber producers agreed. "It would not be a problem, if the price keeps above $1,000 per ton," said Tai Seng, the owner of a 2,300-hectare plantation in Ratanakkiri province. He said Vietnamese buyers are offering $1,500 this month down from $2,600 in July.
"My workers have a high standard of living now," he said, adding that he pays his workers between $366 to $487 per month.
Local growers are being paid about $1,050 per ton for rubber that Tai Seng resells to Vietnam.
Men Siphan, director-general of the state-owned Peam Chaing rubber plantation in Kompong Cham province, also reported a 40 percent decrease in prices.
His 1,400 workers are paid $170 to $195 per month, he said. "I don't see any problem," he added. "I am sure that rubber workers and exports will continue to be good in the long run."
The draft 2007 budget law anticipates declining tax revenue from rubber exports, down 10.4 percent to $4 million in the coming year.
(Additional reporting by Erik Wasson)
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