CAMBODIA: Rubber tycoon, agriculture ministry continue to squabble

The Ministry of Agriculture has rejected a request from private-sector rubber firms – led by agricultural tycoon Mong Reththy – for a meeting to discuss the floundering fortunes of the nation’s rubber sector, claiming the ministry was busy and was already addressing the issue.

The rejection was in response to a request by Reththy, who owns a rubber land concession, for a short-term suspension on export taxes on rubber and tax on profit for plantation owners. In a letter dated 22 March 2016, Reththy suggested that once rubber prices reached USD2,000 per ton, the government could resume collecting an export tax. He proposed a tax of USD30 per ton when exports were valued at over USD2,000 per ton.

In its response, the Agriculture Ministry said it was “too busy” to schedule a meeting with the private sector, and had, through a sub-decree on 4 March 2016, created a different export-tax schedule for rubber exporters.

In March 2016 the ministry released a revised rubber export tax, with producers paying no taxes when the export price is below USD1,000 per ton, USD150 per ton on shipments valued between USD1,000 and USD2,000 per ton, and USD200 per ton on shipments up to USD3,000 per ton.

Reththy, owner of the Mong Reththy Group, said that the meeting was required, especially after the 4 March 2016 sub-decree did not address all of the private sector’s pending issues. While Reththy did not comment on the ministry’s rejection, he said he was perplexed as to why the contents of his letter had been made public. “I don’t understand why they need to publish the denial letter in public,” he said. “They can just send the letter back in an envelope saying that the ministry is too busy to talk about the issue.”

Eang Sophallet, spokesman for the Agriculture Ministry, said the ministry had not made the letter public, and also that this issue was unrelated to disputes the ministry has had with Reththy in the past. “Maybe he or his staff posted it on his Facebook page,” Sophallet suggested. “He is always complaining to us, but ask him what he has done to address the rubber sector’s issues.” Sophallet said there were two reasons why the rubber meeting was rejected – a meeting had already been held with the rubber association and producers in Siem Reap, and the ministry joined with 11 major rubber producing countries to find solutions to the issue. “We have already met with other rubber producing countries, as well as the rubber association and producers,” he said. “Also, the ministry’s schedule is already full.”

Source: Daily “The Phnom Penh Post”, Phnom Penh; 24 Mar 2016
(Syed Rashid Ali, Karachi, Pakistan)