MONROVIA – The Government of Liberia has mandated the Ministry of Agriculture to begin regulating the price of rubber across the country, starting June 2025. The move comes in response to mounting complaints from local rubber farmers about unfair pricing practices in the sector.
By J. Emmanuel Bondo, contributing writer
This decision follows the formation of the Liberia National Rubber Pricing Committee by President Joseph Boakai. The committee is chaired by the Ministry of Agriculture and co-chaired by the Ministries of Finance and Development Planning, Commerce and Industry, and Justice, along with the National Investment Commission, the Rubber Development Fund Incorporated, and the Rubber Planters Association of Liberia.
Rubber processors, represented by Firestone Liberia, are also members of the committee and are tasked with determining and publishing monthly rubber prices for the domestic market.
According to an official government document obtained by this paper, the pricing formula was finalized following a series of technical meetings. The formula is based on the average daily price of one ton of rubber from the previous month on the Singapore Commodity Exchange, applying a 58 percent dry rubber content. From this, production costs are deducted, and a 10 percent profit margin is added for processors to arrive at the final price.
The document quotes the Ministry of Agriculture as saying: “The committee has resolved that the monthly price of rubber will be derived from an average of the daily prices of one ton of rubber for the preceding month posted on the Singapore Commodity Exchange, applying a 58 percent dry rubber content to get the actual, from which the production cost is deducted. The resultant amount will be used to calculate a 10 percent profit margin for the processor.”
Beginning June 1, 2025, the committee will meet during the last week of each month to determine and announce the rubber price for the following month. In addition to media announcements, official price notices will be distributed to processors and rubber buyers for prominent display at all rubber purchasing locations.
The committee emphasized that the pricing formula may be reviewed and adjusted periodically as needed. It also warned that any buyer found violating the mandated prices will face prosecution.
Meanwhile, the committee has disclosed plans to recommend that President Boakai issue an Executive Order to place a surcharge on the export of unprocessed rubber. This measure is intended to protect domestic processors and ensure they can access raw materials for local production.
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