Nort Sumatra's Rubber Exports up 15.04 Pct

MEDAN, KOMPAS.com - North Sumatra’s rubber exports in the first quarter of this year increased by 15.04 pct compared to last year’s, although the production of this commodity in the area continued to decline as the farmers had been switching to oil palm.
North Sumatra executive secretary of the Association of Indonesian Rubber Companies (Gapkindo) Edy Irwansyah said here Thursday that in the first quarter of this year North Sumatra’s rubber exports reached 193,342 tons, but in the same period last year only 168,067 tons.

In the first quarter this year the highest rubber exports took place in March with 54,902 tons, followed in April 48,579 tons and in January 47,902 tons. The exports dropped in February to only 41,959 tons.

`The rubber exports from the province could still increase because the exporters took supplies from other areas including Jambi and West Sumatra.

Relying on the commodity from N Sumatra only the exports cannot reach the volume as production of the commodity continued declining as the growers and businessmen had switched to oil palm while the rubber trees had become too old.

The dependence of the N Sumatra businessmen on rubber supplies from other areas had been going on for the past few years since oil palm has become a primary commodity.

`Rubber production in North Sumatra had reached only about 400,000 tons, but in fact each year the exports had even reached about 500,000 tons,` Edy said.

North Sumatra rubber traders said the price of the commodity from the growers was still quite high, reaching Rp34,500 - Rp36,500 per kg, and supplies had also become tight because of the dry season.

`The high price of the commodity on the local market caused the price of exports also high reaching 4,674 US dollars per kg on the close of the bourse on July 6,` he said.

By : Edy Irwansyah, Sekjen (Gapkindo)Source : Kompas