Rubber price drips to below K1,000 per pound

Myanmar rubber price has dropped down to below K1,000 per pound, according to the domestic rubber market.
Last few days, the local 3 rubber was priced at K1,060 per pound while the local 3 ribbed smoked sheets (RSS) hit K1,080 per pound. But it dripped to K940 per pound for local 3 rubber and K960 per pound for local 3 ribbed smoked sheets (RSS) currently.
Myanmar Kyat depreciation against the US dollar is the main reason for decreasing rubber prices, according to the rubber entrepreneurs.
The local dollar exchange rate was at over K3,000 per dollar at the end of September, but it downturned to around K1,900 per dollar on 29 October.
Besides, the price of rubber has declined due to the resumption of the rubber plantation business starting from mid-October, and the availability of raw rubber in the market has increased, according to the rubber entrepreneurs.
Rubber is primarily cultivated in Mon and Kayin states and Taninthayi, Bago, and Yangon regions in Myanmar. As per 2018-2019 rubber seasons’ data, there are over 1.628 million acres of rubber plantations in Myanmar with Mon State accounting for 497,153 acres, followed by Taninthayi Region 348,344 acres and Kayin State with 270,760 acres, according to the MRPPA.
Besides, about 300,000 tonnes of rubber is produced annually across the country. Seventy per cent of rubber made in Myanmar goes to China. It is also shipped to Singapore, Indonesia, Malaysia, Viet Nam, the Republic of Korea, India, Japan, and other countries, according to the MRPPA.
As of August of the financial year 2020-21, the county generated US$425.25 million revenue from the export of raw rubber, according to data released by the Ministry of Commerce.
Myanmar annually exports over 200,000 tonnes of raw rubber to foreign countries. — NN/GNLM