Economists warn Laos on rubber
Economists warn Laos on rubber
Economists are warning that establishing more rubber plantations will not only harm the environment but also affect long-term food security in Laos.
A senior economist from the National Economic Research Institute, Dr Leeber Leebouapao, told Vientiane Times on Monday there was an oversupply of rubber on the global market, causing the price to fall.
“We should stop planting rubber trees and use our land to grow other crops to ensure food security,” he added.
Dr Leeber said he was very concerned after learning that many families in the north of Laos were planting rubber trees, despite the slump in demand.
He stressed that the market for rubber was slow at present and said other crops would bring in more income for villagers, helping to alleviate their poverty.
“Rubber is no longer a lucrative business and is also harmful to the environment. You know there are no fish in streams or rivers near to where rubber trees have been planted,” he said.
Last year the government called a halt to the approval of investment proposals involving land concessions for rubber and eucalyptus plantations. The suspension will run until December 31, 2015, and aims to give the government time to review its policies and assess the merit of existing projects.
The suspension came after a spate of development projects encroached on villagers' land and had an adverse impact on the environment. The government wanted time to identify which areas were suitable for such projects and which should be preserved.
Minister of Agriculture and Forestry, Mr Vilayvanh Phomkhe, told Vientiane Times recently his ministry had set up a committee to enforce the government's decision to halt land concessions for rubber plantations.
“We decided to carry out a survey to assess the outcomes of projects approved in previous years,” he said.
“Our inspection is almost complete. Initial information reveals that of the 371,000 hectares in concessions given to foreign investors for rubber and eucalyptus plantations, rubber was planted on 280,000 hectares.”
This figure does not include areas of rubber grown by local businesspeople and villagers, he said, adding “We have completely halted land concessions for rubber and eucalyptus plantations.”
Meanwhile the government is still allowing families to plant rubber trees on their own land, but rural households are unaware of the depressed market.
In May this year, farmers in several districts of Phongsaly province were unable to sell their rubber.
The provincial Department of Agriculture and Forestry said rubber trees planted by local farmers were ready for harvesting but no company came forward with a purchase order.
Farmers have also said they have been cheated on the purchase price by Chinese traders when taking their rubber to sell at the nearby border crossing.
While rubber is generally a good investment, it has created a lot of problems for villagers in recent years. The large swathes of land that have been allocated to companies under concession agreements have encroached upon their land and on protected areas.
vientiane times
