Indonesia and Thailand are the world’s two largest rubber exporting countries. It is just that Thailand is experiencing a critical phase due to a decrease in the amount of rubber production due to Pestalotiopsis leaf fall disease (PGDP) and floods that have hit several rubber-producing areas covering an area of 0.8 million hectares (ha).
Head of Processing and Marketing of Products, South Sumatra Plantation Service, Rudi Arpian, said the incident could become a momentum for Indonesia. The price of natural rubber in South Sumatra in December 2020 is predicted to increase again following the flood disaster in Thailand, which is the world’s leading producer of natural rubber commodities.
- Rubber price trend increases due to flooding in Thailand
The floods that submerged Thailand’s rubber plantations in the central provinces of Nakhon Si Thammarat, Narathiwat, Phattalung, Songkhla and surrounding areas were confirmed to have disrupted tapping activities in the country. This is because the activities of rubber farmers cannot tap trees. After all, the trees are submerged in water. This condition can last for the next few weeks.
The stagnant rubber price at IDR 18,447 per kg in November is now starting to rise in the first week of December and is expected to reach an average price of IDR 19,631 per kg in the first week of December for 100% dry rubber content (KKK). Prices do continue to fluctuate, but there is a possibility that the trend will strengthen because the floods in Thailand could disrupt world rubber supplies from that country.
- Factors that influence world rubber prices to rise
Apart from the problems in Thailand, other factors that affect rubber price fluctuations in South Sumatra include world economic growth, automotive market conditions, world crude oil prices, natural rubber market speculators, climate factors that affect world natural rubber supply, as well as foreign exchange rates on the international market. . “
Currently, competition is still tight, Indonesia is also influenced by weather factors so that production is low,” said Rudi.
- The Governor of South Sumatra asked to improve the quality of the rubber.
The Governor of South Sumatra, Herman Deru explained, the momentum in neighboring countries must be maximized by farmers and the Bokar processing and marketing unit (UPPB). This is because to fill the world’s rubber supply requires good quality rubber by improving the quality of the bokar.
By producing Clean Bokar, UPPB is one of the right choices for rubber farmer groups as a means for farmers to improve the quality of their rubber.
According to Governor Herman Deru, with good quality rubber, the farmers’ bargaining position will improve. For this reason, it is necessary to develop a community rubber program in order to achieve the goal of improving the quality of national natural rubber. ***