Posts Tagged ‘rubber’
April 26th, 2015
Vientiane Times, 23 April 2015
Some 500 to 600 hectares of rubber plantation in Sing district, Luang Namtha province are currently being destroyed by the owners of the plantations due to the slump in prices, according to a trade official. The rubber price on the world market has continuously declined over the past few years and consequently the rubber price in Laos has crashed as well.
March 12th, 2015
Vientiane Times, March 12, 2015
More than 50 mining operators have breached agreements they made with the Lao government, it has emerged as officials in charge take action to inspect mine project operations across the country, according to a report. The violations included many mining projects failing to comply with environmental guidelines, while some did not pay obligation fees to the government and local communities, Deputy Minister of Planning and Investment Dr Bounthavy Sisouphanthong told Vientiane Times yesterday.
November 28th, 2014
Vientiane Times, 28 November 2014
The country’s income from the export of rubber products increased substantially this year despite the crisis in rubber pricing in the world market. In the last fiscal year the country earned about US$96.7 million from rubber exports to China, Vietnam and Thailand, of which only US$37 million had come in the first six months according to the Agriculture Department of the Ministry of Agriculture and Forestry.The price of rubber in the country has currently dropped to just over 4,000 kip, while varying between 7,000 and 8,000 kip at beginning of the year. After the number of rubber trees that were mature enough to tap had increased substantially, rubber went to the top of the list of Lao agricultural exports as the highest revenue earner.
November 6th, 2014
Vientiane Times, 6 November 2014
Rubber trading companies have promised to pay more for raw rubber in a bid to assist local growers who are suffering from the plummeting price of rubber in Luang Namtha province. They will purchase the rubber tapped in November this year at around 6,600 kip per kg (5 Yuan) up from the previous 4,100 kip (3.2 Yuan) per kg, according to the provincial Commerce and Industry Department. The price of rubber has been dropping continuously and plummeted in October to a record low for the year. The very low price of rubber sold in October at 4,100 kip (3.2 Yuan) per kg resulted in dissatisfaction among the local people who became discouraged about continuing to harvest the product, Department Director Mr Phonxay Chanthasone said.
October 21st, 2014
Vientiane Times, 21 Oct 2014
Some Luang Namtha provincial rubber growers have decided to sell their plantations after the price of rubber has gone way down. Others have destroyed their plantations and switched to growing other commercial crops such as bananas and sugarcane, the provincial domestic trade section head, Mr Sawaeng Sivilay, told Vientiane Times yesterday. The huge drop in the rubber price this year has discouraged farmers in the province from growing the tree, he said. Some farmers have even chosen to sell the land on which they have planted the rubber trees, asking about 20 million kip a hectare when the trees are between two and four years old and around 30 million kip a hectare when the trees are nearly ready to tap, Mr Sawaeng reported.
Many growers are not expected to continue with this business despite the general understanding that the price will go up again in the next few years.
The raw rubber price in the province had risen as high as 15,000 kip/kg in 2010 but by the beginning of this year it had halved to 7,000-8,000 kip/kg and is now only just over 4,000 kip/kg. About 60 percent of rubber growers are keeping their plantations and stockpiling the rubber waiting for the price to go up again but 40 percent have had to sell because they can’t survive that long without income.
The drop in price here simply reflects the situation in the world market, according to Mr Sawaeng. The management of rubber production and pricing is limited as farmers can only sell to four buying companies in the province because they are legal investors approved by the government. Most of the rubber gets exported to China but the Chinese government has limited its import quota to 2,000 tonnes per year or 500 tonnes a company, Mr Sawaeng said. The quota has been imposed because the Chinese government wants to protect their own local rubber growers, he added.
Lao government representatives, in particular those from the provincial Department of Industry and Commerce, have approached the Chinese authorities with a proposal to raise the quota of the rubber goods but no answer has yet been forthcoming. To help solve the problem, the department last year encouraged rubber growers to set up a cooperative for price negotiation and to help each other get through the price crisis, Mr Sawaeng said. But some of the group’s members have had to sell their rubber at the very low price as they don’t have any other choice.
Luang Namtha, one of the northern provinces in Laos, contains the largest rubber plantations in the country with the majority of the investors being Chinese companies. The province has about 30,000 ha of rubber.
In recent years the product has helped improve the living conditions of local families working with the companies and selling their produce as well as contributing to provincial economic development and poverty reduction.
October 9th, 2014
Vientiane Times, 9 Oct 2014
In the first six months of this year rubber reached the top of the list of Lao agricultural exports as the highest revenue earner after the number of rubber trees mature enough to tap increased substantially. The country exported about 16,650 tonnes of unfinished and raw rubber products to China, Vietnam and Thailand and received almost US$37 million according to an official Agriculture Department report. Other major agricultural export earners were sweetcorn, 186,000 tonnes worth US$36 million; coffee, over 7,000 tonnnes worth almost US$16 million and cassava, 50,000 tonnes worth about US$12 million.
October 8th, 2014
Vientiane Times, 8 Oct 2014
Some ten mine projects are likely to have their concessions revoked after investors granted the concessions failed to abide by the agreements they reached with the government, according to an official report. The report was presented at the annual meeting of the government held recently in Vientiane when the cabinet met with the Vientiane Mayor and the provincial governors.
Director General of the Investment Promotion Department under the Ministry of Planning and Investment, Mr Achong Laomao told theVientiane Times the investors failed to take action to implement the projects within an appropriate time after getting approval from the government. Some investors also failed to pay related obligation fees and taxes to the government, he added.
The recent government meeting resolved that those companies which did not meet sufficient conditions or failed to abide by the agreements they made with the government must have their concessions revoked.
September 3rd, 2014
Vientiane Times, 3 September 2014
A Chinese company has invested more than US$3 million to build a rubber processing factory in Long district, Luang Namtha province in order to transmute raw rubber before exporting the goods to China. The contract was recently signed in the province between the provincial Planning and Investment Department and the company. The signing ceremony was witnessed by the provincial Administration Office Head Mr Khamlay Sipaseuth.
August 27th, 2014
Vientiane Times, 27 August 2014
The number of rubber plantations in Luang Namtha province has continued to increase despite the fact the rubber price has been declining steadily over the past few years. The rubber price began to fall back in 2011 and the price of the commodity on the world market has remained low ever since, Mr Sawaeng Sivilay, an official from the provincial domestic trade section, said.
August 13th, 2014
Vientiane Times, 13 August 2014
Some 38 families affected by a rubber plantation project in southern Xekong province have refused to move to a newly-developed community arranged for them, a senior government official told media last week. The 38 families claim that land in the area allocated to them is not fertile for cultivation.
But technical officials have confirmed that up to 80 percent of the entire area prepared for the newcomers is arable and good for cultivation, Deputy Director General of the Land Administration Department under the Ministry of Natural Resources and Environment, Mr Anothai Chanthalasy told a press conference recently.