Rubber procurement marketing system and its effect on price, variability and income of smallholders (a case study of RSPSB intervention buying in Negeri Sembilan)

The rubber price received by smallholders is often linked to poor marketing system. Exploitation by middlemen is often being highlighted as issues often discussed by many. Due to the seriousness of the effect of poor and unstable price received by smallholders, the government through RSPSB had devised a system to help stabilized the price of scrap and latex using direct procurement and commission system. This study focuses on whether or not RSPSB is able to pay a reasonable price to smallholders for selling scraps. In addition, this study tries to examine the degree of acceptance of the smallholders toward the system. Both primary and secondary data are used in this study. The primary data is derived through survey using pretested questionnaires prepared earlier. Respondents were selected from 9 RSPSB buying depots which sold latex and scraps. Thus result of this concluded that there is significant difference between the price paid amongst smallholders selling scrap or latex through the three systems of procurement: latex and scrap direct purchase, and scrap through commission system. It is revealed that the intervention of RSPSB helps to stabilize the price received by smallholders. Other findings also revealed that smallholders urge the government to increase the price of rubber so as to curb with the current standard of living. The smallholders were satisfied with the services rendered by RSPSB.