The ASEAN Rubber Business Council (ARBC) said they fully support all governments’ initiatives to ease the effect of falling rubber prices.
ARBC comprises rubber trade associations of Thailand, Indonesia, Malaysia, Singapore, Vietnam and Cambodia.
In a statement, the council asked for support from consumers of natural rubber (NR) to help rubber smallholders in their situation. ARBC said the persistent low rubber prices had adversely affected the livelihood of the smallholders, in particular, those who were largely dependent on rubber as their source of income.
“It is through such collective effort and collaboration among the producing and consuming countries that the NR industry will continue to thrive and remain to be sustainable for many more years to come,” it said.
“If this situation persists, there is the possibility that many more smallholders will stop tapping and abandon their rubber holdings for other more lucrative activities.
“This will then disrupt the supply of raw materials required by the rubber product manufacturers for their operations,” it said.
ABRIC said it was concerned over the low rubber prices which had started declining in 2013 and had been hovering around the present low levels from the second quarter of last year.
Among the reasons for the price decline include slowing demand, in particular, from China, the world’s largest consumer of NR which has been reporting slower growths in recent years. Other factors include the continued economic uncertainties prevailing in the Eurozone and other parts of the world as well as the plunging crude oil prices and their impact on commodities such as rubber, ARBC said.
This matter was discussed the ARBC meeting in Bali last August 29. All members of the Council fully support the various initiatives proposed and undertaken by their respective governments to support rubber prices, thus helping to sustain the overall well-being of the smallholders.