KUALA LUMPUR: The Asean Rubber Business Council (ARBC) says it is concerned over the sustainability initiative set by consumers of natural rubber (NR).

ARBC comprises the rubber trade associations of Thailand, Indonesia, Malaysia, Singapore, Vietnam, Cambodia and Myanmar.

Its members account for around 71 per cent of the world's total NR production.

At a recent meeting in Singapore, ARBC discussed the current global NR market situation, in particular, the unremunerative NR prices and higher production costs which had affected the sustainability and the well-being of the rubber smallholders.

While acknowledging the need and importance of NR sustainability in the industry, the members were concerned over the sustainability issues which had impacted the livelihood of the smallholders.

"The ARBC members thus stressed the need that a sustainable NR industry should benefit both producers and consumers.

"A major concern is that the low NR prices coupled with higher cost of production could affect the supply chain of rubber in the global market should the smallholders decide to switch to other crops or activities that are more remunerative."

Therefore, having sustainable NR pricing should be urgently addressed against increases in cost of production and the rising cost of living that have put rubber farmers in difficulties, ABRC said.

"NR prices need to be attractive enough to ensure that the smallholders continue to remain in the industry so that they would continue to supply the necessary raw materials to meet the needs and demands of the consumers and end-users alike."

The ARBC members reinforced their views that developing sustainable NR should not be confined solely from the angle of environment and deforestation, but should encompass the economic and well-being of the rubber smallholders as well.

https://www.nst.com.my/business/2023/03/891077/asean-rubber-producers-address-concerns-smallholders-sustainability
Sumber: New Straits Times