Ye -- The global economic downturn has hit the betel nut and rubber plantation communities after an overnight drop in the price of both products.
Betel nut farmers are earning less than 8 Kyats per nut compared to 12 Kyats compared to last year's price which has dropped almost 40 percent. One Viss of dry betel nut is worth only 2000 Kyats compared to last year's price of 3000 Kyat --- a drop of 33 percent.
"I had kept my stock of dry betel nut hoping to sell it for a higher price but it has gone in the opposite direction," said Nai Kyi of Hneehnu village, Ye Township. Many betel nut farmers are making no profit because of the drop in prices and less production over the long dry season. Some plantation owners, who have relatives working as migrant workers in Thailand and Malaysia, are depending on them to send money home for the maintenance of their farms.
"The prices of gardening products and gasoline have also dropped, but other consumer prices are stable. Overall it is a bad year for betel nut and rubber farmers," said Ms. Mi Khin from the Durae community.
Rubber plantation owners have earned less from their investments despite a recent spree by merchants from Mandalay who bought up rubber supplies for shoe and tire factories. But now one pound of rubber has dropped from 1300 to 700 kyat says a resident from Mawkanin village.
In the hope of making a profit from global demand in the previous year, many farmers from southern Mon State expanded their rubber plantation in Pa-An, Kyaik Hto and Hlegu area to develop one of Burma's main agriculture products.
Over the past three years, the nearly fourfold rise in price of rubber from 300 Kyat to 1100 Kyat per pound since early 2004 before the global economic meltdown was becoming a real cash cow for Mon farmers who moved into Pegu, Tenasserim Division, Karen and Northern Mon States to raise their investment. The New Mon State Party was involved in the Border Development Project to encourage local farmers to develop rubber plantations near the Three Pagodas Pass area and northern Tenasserim Division.
"I am not sure if it is a wise investment because of the global economic crisis now," said Mr. Naing who bought 50 acres of rubber land near Pegu for 7.5 million Kyats before the price went down.
According to Burmese official statistics, Burma produced over 80,000 metric tons of rubber from 364,500 hectares during the fiscal year 2007-08. The Ministry of Agriculture and Irrigation had pushed for strong growth, aiming to increase plantation land by a further 100,000 hectares. Rubber was cultivated only in southern part of Myanmar prior to 1990 but lately it has spread steadily north to cooler regions.
