Legislation for Rubber Sector Being Drafted

The government, in cooperation with the Myanmar Rubber Planters and Producers Association, is currently drafting legislation for the rubber industry. Efforts are being exerted for a Rubber Central market to come out once a Rubber Law is instituted.
At present, officials from the Myanmar Rubber Planters and Producers Association and related ministries including the Ministry of Commerce and the Ministry of Agriculture, Livestock and Irrigation are in discussions, said U Khaing Myint, the secretary of Myanmar Rubber Planters and Producers Association.
“Only upon enactment of this bill can the Central Market be implemented. However, we do not waste our time in waiting for development of law. Therefore, we are preparing for the needs to produce the Central Market in cooperation with the competent authorities concerned, especially in choosing the place, construction and finding skilled labourers”, said U Khaing Myint.
A Rubber Law is being drafted and frequently amended. The bill is expected to be acted on by the Hluttaw in late 2018.
The Rubber Central Market will release the market prices, control the price and maintain quality. The Central Market will be established to become a single spot at which local and foreign businesses can bid for rubber.
“The government’s guidance plays a vital role in emergence of the central market as it needs fund to pay the sellers in advance before the foreigner buyer company transfers the money. Nobody will take risk without certainty on benefit to make deposit of thousands of millions at the Central Market”, said U Khaing Myint.
Upon emergence of Rubber Central Market, those who can lead processing in rubber market are crucial role to effective management in order to avoid monopoly on market not to harm the rubber industry.
Rubber Central Market has already emerged in Thailand, reaping successful result. There has tight security in this market as market info might leap from unscrupulous staff to the companies outside.
“The emergence of the Rubber Central Market can control the market price and attract more foreign buyers. Moreover, rubber farm owners will also make efforts to upgrade rubber quality to place on the central market”, said Daw Lin Lin Tun, a rubber farm owner from Hlaingbwe Township in Kayin State.
Seventy per cent of Myanmar’s rubber goes to China. The remainder is sent to the markets of Singapore, Indonesia, Malaysia and other countries in the region.
Rubber is mainly cultivated in Mon and Kayin states, Taninthayi, Yangon and Bago regions. There are over 1.67 million acres of rubber plantations across the country, but only about 700,000 acres can produce natural rubber latex.

 

Source: Global New Light of Myanmar

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