MYANMAR’s rubber is not competitive enough – quality standard wise – for the European markets despite having duty-free access to the EU.
According to U Khaing Myint, a spokesperson of the Myanmar Rubber Planters and Producers Association, the country’s rubber suffers from quality that is too low to make the sales in the EU markets.
He said that local plantations failed to produce high quality rubber at par to the standards required. “They have to know how much dust, sand, stone, water and water vapours are contained in the rubber. Even if we get buyers from the EU, if shipments don’t meet their quality standards we have to compensate them,” he eplained.
The Association said that 70% of the Myanmar rubber is shipped to China, and the rest is exported to Singapore, Malaysia, Indonesia, Vietnam, Korea and India. Last year some 81,000 tonnes of rubber were exported, generating revenues estimated at US$230 million.
U Khaing Myint said the low quality rubber are priced lower. A commonly exported grade, RSS-3, normally fetches about US$2350 per tonne, international price. But Myanmar’s RSS-3 grade only gets about US$2100 per tonne.
The reinstating of the EU’s Generalised Scheme of Tariff Preferences (GSP)in January 1, 2014, provided Myanmar the privilege to export to the region as well incentives for local producers to improve the quality of rubber. Recently, the country was able to export a container of 22 tonnes of rubber to Europe.
Myanmar produces 150,000 tonnes a year of rubber. Plantations are concentrated in Mon and Kayin states and Taninthayi Region.