Cambodian natural rubber prices rose by about 20 percent last month compared to the same time last year as a result of major global producers reducing supply to the international market, officials and rubber producers said Monday.
“The prices have risen because main suppliers in the world have taken measures against dropping prices in the global markets, especially Thailand, Indonesia and Malaysia,” said Pol Sokha, director of the Agriculture Ministry’s rubber department.
Mr. Sokha said those countries were providing subsidies to their rubber farmers as part of a program to reduce rubber harvesting, or cutting, in order to reduce supply and drive up prices.
Heng Sreng, managing director of local rubber exporter Long Sreng International Co. Ltd., said export prices rose from $1,350 per ton in May 2014 to $1,650 per ton last month. C
hea Sayim, president of the Memot Family Rubber Development Association in Tbong Khmum province, said the price of rubber latex, the white sap used to make rubber, also increased from 600 riel (about $0.15) per kg in May 2014 to 2,500 riel (about $0.62) per kg last month.
“Now [rubber farmers] can hire some workers back to work for them on their plantations because the prices have risen,” Mr. Sayim said.