Hainan Province to Set Up Rubber Price Protection Mechanism

Hainan is to set up a price protection mechanism to foster healthy development of the province’s rubber industry, according to a report of Hainan province on enforcement of agriculture law read by Li Guoliang, deputy governor of Hainan province, on March 30.

According to the report, price is the key element affecting the development of rubber industry. Hainan has been making efforts to set up development fund of rubber industry to stabilize China’s natural rubber industry.

Leading enterprises of the fund will share the risks in operating the fund to ease fiscal pressure of the government.

To facilitate healthy development of rubber industry, Hainan has built a core rubber plantation of 2 million mu (133,333 ha) on the basis of existing plantation of Hainan Rubber Group and will upgrade outdated plantation, improve the protection forest system, and increase the yield per hectare.

In the 2016-2020 period, Hainan expects to upgrade rubber plantation of more than 50,000 mu and tap new rubber trees of more than 60,000 mu each year. The yield of dry rubber per mu is expected to surpass 85 kilogram, the annual yield will be over 135,000 tonnes, and the yield per capita will be over 50,000 tonnes in five years.

Hainan also encourages rubber companies developing southeastern Asian markets through equity merger and aims to add rubber yields by 300,000 tonnes.