June 12, 2023
The price of natural rubber at the farm level in North Sumatra (SUMUT) is now at IDR 8,500/kg from the previous IDR 7,000/kg. But despite the increase, this price is still far from the farmers’ ideal price of IDR 15,000/kg.
Since the beginning of 2023, the average price of rubber is still below the farmers’ ideal price in the IDR 7,000 to IDR 8,000/kg range. Even farmers have experienced the worst price at IDR 6,000/kg or even 5,000/kg.
If we calculate production costs and farmers’ needs, the price of Rp. 6,000/kg is already a significant loss. It should be above IDR 10,000/kg. For now, ideally, Rp. 15,000/kg, said the rubber farmer in Bahorok District, Langkat Regency, Riza, to Medanbisnisdaily.com, Monday (12/6/2023).
In addition to the price issue, which is still far from the ideal level, said Riza, fertiliser availability is also a problem for rubber farmers in the area. They also have to fight over fertiliser with oil palm farmers. Sometimes you can’t. That’s why we hope the government will have some quota so all farmers can get it. So rubber farmers buy non-subsidised fertilisers, which are automatically more expensive and reduce their income.
Riza said that compared to palm oil, the rubber price is very far below. This has also triggered many farmers to switch their crops to oil palm because it is more promising. The price is more stable and even tends to rise. But rubber is just the opposite. That’s why we (farmers-ed) feel increasingly distant from the government’s attention; because of that earlier, it may not be very promising anymore.
Riza said that currently, the rubber plantations are in the track season, so their production is also declining. The track season is expected to wrap up next month. And later, when there is much production, prices are expected to drop. But even so, farmers hope the price can last and be close to IDR 10,000/kg.
Sungkunen Tarigan, chairman of the “Mbuah Page” rubber farmer group in Kuta Jurung, Deli Serdang regency, said that rubber prices this week varied somewhat.
In his place, prices in the field ranged from IDR 8,500 to IDR 9,500/kg, an increase from the previous IDR 8,000 to IDR 9,000/kg, up slightly from last week. But this is still far from what farmers expect. Of course, farmers hope the price will continue to rise in the coming weeks, he said.***
source: Medanbisnisdaily.com