Rubber prices fell drastically this year, slipping from Ks 615 (US$0.46) per pound in the first week of 2015 to Ks 570 per pound this week, according to the Myanmar Rubber Planters and Producers Association.
“The current situation is really bad for the planters. The prices should be stable at around Ks 600-to Ks 700 per pound for the producers to reap a profit,” said Khine Myint, the secretary of the association.
The sharp drop is thought to be connected to international market trends.
Aung Thu, a rubber planter in Thanbyuzayat, Mon State, said: “It’s hard for the planters, like me, to make ends meet this year. Paying for labour ate up 30 per cent of our profits before, but now it takes 40 per cent. The supply is high, and the demand is low. We couldn’t harvest as much as expected since the weather is too hot.”
Rubber prices have been dropping since 2013. More than 30 per cent of rubber farms in Myanmar stopped operating in March due to losses.
Wholesale centres appraise the prices of raw rubber from the farms based on their quality.
Rubber farms were inactive from June to August due to heavy rains.
A tonne of rubber costs $1,200 in the global market as of Monday.
