At least two of the larger rubber-purchasing companies in Mon State have ceased buying rubber for the time being, says a purchasing agent. The agent, who travels around Mon State buying rubber for Yone Shin, said that his company and Lighthouse stopped buying rubber last week.

Rubber prices have been declining steadily, with one kilo currently fetching 1,000 kyat (less than $1 USD). One week ago, a kilo of rubber in Mon State was valued at 1,300 kyat, while two months ago a kilo sold for 2,600 kyat.

“The company does not see their business will improve, though some small rubber shops still buy and some small plantation owners are still selling,” the Yone Shin agent told IMNA. Both companies have offices in Mudon, Thanpyuzayart and Ye Townships. Chinese businessmen own Yone Shin and Lighthouse, along with most of Mon State’s eight other rubber-purchasing companies, the agent said.

At least one company is still purchasing rubber, the purchasing agent said, taking advantage of the low rubber prices in the hope that the market will go up later.

“The rubber buyers are gambling with the low price,” a plantation owner from Mudon told IMNA, adding that some farmers have to sell the rubber in spite of the low price because it is their only source of income.

“Rubber values have more than cut in half,” the owner added, “but prices of other goods have not gone down. So things are difficult for the farmers.” A female plantation owner in Mudon agreed, and told IMNA that she has had to sell rubber because she needed money to cover family expenses and pay employees.

A female owner of a rubber buying shop in Mudon said that the low prices are forcing some farmers to borrow money to cover expenses.

Other buyers are continuing to purchase small amounts of rubber, the agent from Yone Shin said. They buy not because they think it will bring them profit, but because they want to maintain relationship with farmers. Failure to buy anything now, they fear, will give other purchasers in the normally competitive rubber market an opportunity to build relationships with new clients.