The Indonesian government should be more active in inviting rubber exporting countries to reduce supply in the international market since last three years the price has remained in the low range.
Chairman of the Association of Indonesian Rubber Producers of South Sumatera Province Alex K Eddy in Palembang on Thursday (16/11), said it is the only way for the short term because the current supply in the world market really 'flood'.
"Someone wants to be a leader, and Indonesia can take over this, that is how to get countries like Malaysia and Thailand and new players to sit together to solve this problem," Alex said.
According to him, in relation to the decline of export commodity prices, Indonesia is actually the most problematic because almost 90 percent are smallholders.
In addition, the ratio of sap production per hectare is very low compared to Malaysia, Thailand and Vietnam. In Indonesia in one hectare only get 1 ton of sap, while in Vietnam and Thailand has penetrated 2 tons.
"Obviously when the price falls as it is today, that is 1.4 dollars per kilogram makes it no problem for Thailand and Vietnam, while for Indonesian farmers it becomes very heavy, because it only gets about Rp700.000 per month," he said.
The three rubber producing countries incorporated in the International Tripartite Rubber Council (ITRC), namely Indonesia, Malaysia and Thailand, have agreed to reduce supply to export markets in the Export Tonnage Scheme Agreement (AETS).
However, this measure is considered less effective if new rubber-producing countries (Laos, Vietnam, Myanmar, and Cambodia) that are not members of the ITRC do not commit similar commitments.
Meanwhile, South Sumatra's rubber production target of 1.3 million tons in 2018 is certain to miss this year as per November only reached 1 million tons.
This target is not achieved no other impact of the price weakening at the level of farmers so a lot of land is just ignored.
"In 2016 it will fall even more, because the production has not reached 1 million tons, only about 900 thousand tons," he said, adding that at the beginning of the year there were price fixes.
Currently the price of rubber in international trade is only about 1.4 dollars per kilogram, or it is still far from expectations to touch 2 dollars per kg. Worse, farm-gate prices range from Rp5,000 - Rp7,000 per kilogram.
One of Anwar, a rubber farmer of Mesuji Raya, Ogan Komering Ilir, South Sumatra, said that the price of rubber gum fell since the beginning of the year from Rp7,000.00 to only Rp6,800.00 (dry 100 percent) and Rp5,600.00 ( still wet with a drying period of two days or 75 percent dry).
"Currently it is difficult, the land is much left to the farmers because the price fell.With the calculated income per month, around Rp700 thousand, of course this is not enough to meet the needs of families," he said
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