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Glut In Rubber Market Brings Down Price Of The Commodity – Douglas Unggah

KUALA LUMPUR, Oct 9 (Bernama) — The glut in the world rubber market which was estimated to reach 600 million metric tons in 2012 has resulted in the drop in the commodity price and the effects are still felt until today.

The Minister of Plantation Industry and Commodities, Datuk Seri Douglas Uggah Embas, said the situation became more difficult when the glut reached 300 million metric tons last year.

He said the effects of the drop in the rubber price were not only felt by Malaysia but also in the other major producing countries including Thailand, Indonesia and Vietnam.

“In my discussion with the Thai Minister of Commodities recently, I was told that the country had 200 million metric tons of rubber stocks.

“We will meet again next week in Kuala Lumpur to discuss how to control production and ensure that rubber supply at the production centres is controlled in future,” he said during question time at the Dewan Rakyat sitting, here today.

He said this when replying to a supplementary question from Datuk Othman Aziz (BN-Jerlun) who asked on the strategy in implementing the price structure to stabilise the price of the commodity in the country.

Uggah said there was certainly a dispute in the rubber price fixed at the global level but the Malaysian Rubber Board (LGM) had to implement it as it was also referred to by the other countries.

“The Cabinet has approved a fund of RM6.4 million for use by 24 rubber purchasing cooperatives to prevent them from selling to middlemen and reducing the burden borne by the smallholders.

“The price offered by the cooperatives are according to the price set by LGM, which is between 20 and 30 sen higher compared to the price outside and all payments are in cash,” he said.

— BERNAMA

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