"Rubber Tappers in the Lurch "

 by Professor Datuk Dr. Ahmad Ibrahim, Tan Sri Omar Centre for STI Policy Studies, UCSI University

    HUSIN is a rubber tapper. He lives alone and taps rubber on a small patch of land owned by Hasan. The arrangement is that whatever rubber he taps, it is shared half-half with Hasan who, because of old age, is no longer able, to tap his own holding. There are many like Husin in the country. There are also many like Hasan. They are all rubber smallholders. The plot of land owned by Hasan is less than three hectares. Most of the hundreds of thousands of rubber smallholders in the country own similar plots to earn a living. For decades now, ever since the big plantation boys abandoned rubber cultivation for oil palm, rubber in the country has been supplied by people like Husin and Hasan. 

   There have been periods when world rubber price hit the high of more than RM5 per kg. But more often than not, prices have hovered way below. Recently it dropped below RM2.50 per kg. People like Husin and Hasan would be lucky to earn at the most RM700 per month each. In these days of high food prices, not much can be bought with such meagre sums. Husin is luckier because he lives alone. 

    But it is different for Hasan who has his aging wife to care for. If not for the money he occasionally receives from his son, a teacher, he would be even more worse of. This has been going on for decades now. Is there a chance for  Hasan and Husin to escape poverty? This is most unlikely, looking at the trends in rubber prices these past years. Can the government put in place a policy to at least provide citizens like Husin and Hasan a decent living? While rubber smallholders suffer such misfortune, others involved in the making of products from rubber do not face the same challenges. 

    In fact, most have become richer from the rubber supplied by smallholders. Tyre manufacturers are among those that have gained tremendously from the rubber that these smallholders toil to produce. It is a fact that tapping rubber is not an easy task. Husin has to wake up before sunrise to do his job. This is because science has shown that the early hours of the morning are the best time to tap to get the best yield. This is also the time when mosquitoes are most active in the rubber holdings, not to mention other menaces. But rubber smallholders - have to soldier on. 

    Tyre-manufacturing accounts for around 70% of the volume of rubber supplied worldwide. Tyre producers will also be the biggest loser if rubber smallholders abandon tapping on account of poor returns. A recent move by some to push for sustainability certification may not be in the best interest of smallholders. The narratives that are being bandied around, mostly unsubstantiated, may lead to new import restrictions by rubber buyers who may deny smallholders access to markets. This can be even more damaging for an already deprived group in the world rubber supply chain. Instead of going down that road, it would be more constructive for companies to support rubber smallholders by giving guaranteed pricing. 

    Only after smallholders are assured of a humane income should issues of sustainability be introduced. A new initiative by the government to establish the National SDG Centre under the Economic Planning Unit is a welcome move. Since the number one goal of the 17 SDGs is to reduce world poverty, rubber smallholders are definitely among the relevant groups. Unless the issue of under-compensation is effectively addressed, the job of the SDG Centre can never be complete.