China is expected to purchase 300,000 tonnes of rubber from Cambodia in 2018, according to a commerce ministry statement.

Following a meeting last week between the Ministry of Commerce and Chinese and Japanese delegations, the ministry released a statement confirming that China is expected to purchase 300,000 tonnes of rubber from Cambodia in 2018.

“Recently, Shaanxi, China, has signed a memorandum of understanding with Cambodia to buy 300,000 tonnes of Cambodian rubber,” the statement said. “China is expected to begin importing it in 2018.”

Land for cultivating rubber has increased to about 437,000 hectares, 64 percent of which is controlled by rubber industry firms and the rest by family-run operations, according to the Agriculture Ministry. Cambodia exported about 50,000 tonnes of rubber in the first quarter of 2017.

The rubber price on the global market had dropped to between $1,600 and $1,700 per tonne from $2,400 in January and February.

At present, the government levies $50 in tax duty per tonne of rubber exported if the price is from $1,000 to $2,000 per tonne, and $100 of tax duty per tonne of rubber if the export price is above $2,000 per tonne. It takes zero tax if the price is below $1,000 per tonne.

Separately, Cambodia's Trade Centre in Xi’an city, Shaanxi province, is actively displaying Cambodian products to Chinese customers. The centre has packed 5,000 tonnes of rice purchased from Cambodia without tariffs into small packages for retail sale in the Free Trade Area in Shaanxi province.

Source: Khmer Times. Date: 2017-07-10