Raw deal for Sabah rubber smallholders

The planters wish a state supervision to finish cost control.

PENAMPANG: The Sabah Rubber Smallholders Association (SRSA) says it is time a state supervision adopted an open marketplace process upon tender rubber sales in a state.

SRSA boss Chua Men Nam, commenting upon a plight of a rubber smallholders in Sabah, pronounced dissatisfaction over "low" prices bound by a Sabah Rubber Industries Board (SRIB) for a commodity is paving a way for a thriving black market.

He pronounced a low prices as well as an trade taxation had forced a little rubber smallholders to filch out their tender rubber by a backdoor for a improved profit.

Chua pronounced SRIB should be means to assess a value of a smuggled tender rubber based upon a available interpretation upon a sum annual rubber prolongation for a state, against a 10% avocation collected by a state government.

To stop this activity, SRSA suggested which a state supervision annul a 10% trade avocation for tender rubber from Sabah as well as concede rubber smallholders to sell a tender rubber to factories in a peninsula
directly.

"Many rubber smallholders considered a stream charges as exploitative which does not benefit a state rubber industry during all," he said.

"We have our own cooperative. We can regularly organize ourselves to sell a tender rubber to a peninsula directly. In a end, you only wish to safeguard a smallholders have been removing a satisfactory as well as improved price," he added.

SRSA is already discussing a probable joint venture with a in isolation zone to set up a own estimate bureau to purchase tender rubber from rubber smallholders, if a state supervision ! adopts a n open marketplace policy.

Chua pronounced which by taking advantage of an open marketplace policy, it would encourage a in isolation zone to set up rubber estimate factories in a state as well as help emanate a competitive marketplace for a state rubber
industry.

Processing fee

Under a benefaction set-up, rubber prices dynamic by SRIB is many lower than which offered by factories in Peninsular Malaysia as well as Sarawak.

SRIB has pronounced a tall estimate fee imposed upon a state rubber smallholders is due to logistics, tall physical phenomenon charges as well as tall burden charges as a result of a cabotage policy.

However, Chua scoffed during a claims as well as questioned how Sarawak could means to give a improved cost to a rubber planters there, despite a fact which they, too, have been carrying a same problems as
Sabah.

"The disproportion in rubber cost in between Sarawak as well as Sabah is RM1.50 to RM2 per kg. Even a disproportion of 10 sen makes a huge difference, generally if based upon our annual prolongation of about 70,000 to 80,000 tons.

"If it is distributed upon RM1.50 per kg, our [rubber smallholders] losses is about RM1 million. Hence, many rubber smallholders refer to sell their tender rubber to Sarawak," he said.

In Peninsular Malaysia, many of a rubber-processing factories have been owned by a in isolation zone as well as they imposed a estimate fee of in between 70 sen as well as 90 sen per kg upon rubber smallholders.

"SRIB charges as many as RM1.60 per kg despite being a supervision agency which is ostensible to be service-orientated. We direct a SRIB to insist upon how it determines a rubber cost in Sabah," Chau said.

He also reminded SRIB ubiquitous physical education instructor Harris Matthew which in 2003, it used to concede 70.2 sen only from rubber dealers who collected a tender rubber material from a rubber smallholders as! well as sold it to SRIB. This authorised a rubber dealers to have during slightest RM1 per kg or RM1,000 per
ton.

Financial constrain! ts

Chua also pronounced many rubber smallholders in a state have been puzzled which SRIB claims which it is not only not making a profit though also facing monetary constraints, despite carrying imposed such a tall estimate fee upon them all this while.

He removed which final year a state supervision had to speak up RM60 million into SRIB, so which it could go on to purchase rubber from a rubber smallholders. At a single stage, SRIB even owed a rubber smallholders up to three months, he added.

"We urge a state supervision to open a rubber marketplace as well as break a monopoly by SRIB," he said.

There is only a single private-owned rubber estimate plant in operation in Sabah. Sited in Keningau, a bureau which has handling for about five years is only estimate "in-house" rubber to be sold
to Kuala Lumpur.

"Unfortunately, it is also following a cost set by a SRIB," Chua said.

"We also wish an open discuss with SRIB upon this issue; a sooner a better," he added.

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