Rubber growers suffer from global financial crisis

Rubber growers suffer from global financial crisis

(KPL) The rubber growers in Luang Namtha province have begun to be impacted by the global financial crisis.
As Chinese middlemen refused to buy rubber production at the old price from rubber growers, due to a fall of world market demand, said a local authority.
An official of Industry and Commerce Office of Luang Namtha province said that rubber growers were facing the global financial crisis spread, the rubber growers in Luang Namtha province are very anxious because of the rubber milk price has fallen from 8,000 kip in 2007 to 4,500 kip per kilogram in 2008.
Mrs Vaenghoua Nabounpheng, Head of Industry and Commerce of Luang Namtha province explained last Friday that the rubber milk price has double fallen caused by the global financial crisis.
The rubber buyers told Mrs Vaenghoua that they could not buy the rubber at the same price from growers in Luang Namtha province because vehicle industrial sector worldwide has decreased its the volume production.
“Many growers in our province they were very heavy-hearted related to a drop of rubber price,” said Mrs Vaenghoua.
She further added that entire Luang Namtha province has more than 21,000 ha of rubber tree which increased from 8,000 ha in 2007. However next year, there will not be the expansion of the rubber plantation area in the province because growers are not confident in fluctuation conditions of economy.
Last years, the rubber production in Luang Namtha province has been monopolized by Chinese market.