Rubber prices predicted to fall in 2012

MEDAN-Rubber prices predicted level of farmers dropped in 2012 due to the potential decrease in demand for rubber from China.

President Director of PT Gotong Royong Group Medan Fauzi Hasballah suggested by the economic conditions the United States and the European Union is erratic, the world's biggest rubber buyer, especially China, resist the urge to enter the market because the stock pile.
"As a result of rubber prices in overseas markets remain depressed in the range of U.S. $ 3 to U.S. $ 3.5 per kilo gram. Rubber prices in 2012 will not be as good as 2009 that could reach U.S. $ 4 per kilo gram, "he told Business Today (Wednesday, December 28).

According to him, the party most affected by the decline in rubber prices in the global market is the farmer. Traders, particularly exporters, are still getting the margin between 2% to 3%. However, the value of profits down compared with the 2010 and 2011.

"The problem is the income of farmers in rubber production centers are expected to increasingly depressed," he said.

He mentioned in a number of rubber-producing areas in North Sumatra rubber price has dropped to Rp8.000 per kilo gram. In fact, earlier, farmers had enjoyed up to Rp22.000 price per kilo gram.

Rubber farmers in Parlilitan, District Humbang Hasundutan, J. Tumanggor, admitted at this time, thick rubber prices (bokar) in that area only Rp8.000 per kilo gram.

"The price [rubber] the last three months of erratic and strange. Farmers rarely Menderes rubber because of the rainy season, but prices down from Rp15.000 to Rp8.000 per kilo gram, "he said.

Games middleman

He guessed that the rubber price level tricked farmer middlemen or traders who accidentally dropped the price by reason of the factory at the High Cliff and in Medan did not receive stock rubber because they are still a lot.

Joint Executive Secretary of the Indonesian Rubber Company (Gapkindo) Sumut Edy Irwansyah bokar estimates that the price of rubber in the factory around Rp26.000 to Rp27.000 per kilo gram with reference to rubber prices in commodity markets in Singapore.

Supposedly, he explained, if the reduced transportation cost and profit of the middlemen, the rubber price level, farmers could still be on top of Rp15.000 per kilo gram for good quality.

"The eyes of the rubber trade chain level, the farmer is too long. So that traders enjoy more benefits sdibandingkan with rubber farmers themselves, "he said. (ESU)/B-D