Smallholders Body Urges Govt To Reconsider Ban On Rubber Wood Exports

KUALA LUMPUR, July 5 (Bernama) -- The government should reconsider the ban on the export of rubber wood which has a detrimental effect on smallholders who depend on the rubber trees for their livelihood. In a statement Tuesday, National Association of Smallholders Malaysia President, Aliasak Ambia, said the issue of the lack of raw materials needed to be discussed in-depth considering its impact on various sectors of the industry. “The effect is not limited to the downstream sector but the whole rubber industry, especially the smallholders who contributed 95 per cent of the rubber production in the country. “These smallholders are already hard-pressed by the drop in the price of lump rubber which has dipped to US$0.34 (RM1.50) a kilogramme. The ban would place an extra burden on them, especially those who have old rubber trees and want to sell the rubber wood,” he said. Aliasak said NASH did not dispute the rubber entrepreneurs’ claim of a shortage of rubber wood for the furniture-making industry, but denied that this was caused by export activities. “The shortage is attributed to factors like the decline in replanting activities, infertile soil, including the fact that rubber plantation is not widespread in Muar,” he said. Prior to 2008 rubber smallholders enjoyed a high price for their products, but this fell drastically after the export tax was introduced, he said. “In 2008, rubber smallholders could earn RM20,000 per hectare (ha), but after the export tax was implemented prices plummeted to RM 2,000 to RM3,000 per ha, unlike Thailand which still enjoys a high price for their rubber wood even today. “The ban would increase their burden, especially in replanting activities,” said Aliasak. He urged the government to review the problem as the ban on rubber wood export was not made in a comprehensive manner since any decision by the government should go through the respective ministry. -- BERNAMA