Export ban feared Rubber Lowers Price

Medan- Traders of rubber in North Sumatra admitted worried by the appeal to the exporters to restrain exports because it could make the policy if the price of rubber in the manufacturing plummeted.
"If exports were detained, "bokar" price (if rubber material) in manufacturing fell again, and even dropped from an already low price of Rp24 thousand per kg," said rubber traders in North Sumatra, M. Harahap, in Medan, Saturday, November 12, 2011.

In fact, he said, today's stock in the hands of merchants bokar still there and bought the old price when commodity prices were at the manufacturer in the range of Rp29.000-Rp30.000 per kg.

"It could be a great loss if this is how," he said.

In addition to a large loss from the difference between purchase price and selling, traders also worried farmers will not sell gum by reason of the cheaper prices.

"Whereas the sap of the farmers were a bit because penderesan disrupted by the rainy season," he said.

Joint Executive Secretary of the Indonesian Rubber Company (Gapkindo) Edy Irwansyah acknowledged that the association had sent a letter to a member of the export demand if prices hold below 3 U.S. dollars per kg, according to a letter from the DPP Gapkindo.

"Letter dated 11 November which contains appeals not to sell rubber below 3 U.S. dollars per kg had been received and Gapkindo North Sumatra also has to go on to members in North Sumatra," he said.

Gapkindo expect exporters to comply with the policy which aims to avoid the occurrence of another decline in rubber prices abroad, the price of rubber type SIR20 in the stock market in Singapore, November 10, closed 3.149 U.S. dollars per kg for shipment in December.

The decline in rubber prices itself for the acts allegedly took off speculators exploit its position of economic crisis in the United States and Europe.

"The actions withstand the decline in rubber prices were also made ​​of rubber associations in Thailand and Malaysia," he said. (Ant)B-S