Monrovia — The Liberian government has directed the Ministry of Agriculture to assume full regulatory control over national rubber pricing, a landmark decision aimed at protecting farmers and ensuring fair market practices across the country's struggling rubber sector.
The mandate, which takes effect in June, follows the formation of the Liberia National Rubber Pricing Committee by President Joseph Nyuma Boakai to establish a transparent, enforceable pricing mechanism. The move comes after years of complaints from local farmers about exploitative buying practices and unregulated price fluctuations.
The committee--chaired by the Ministry of Agriculture--includes high-level representatives from the Ministries of Finance, Commerce, and Justice, as well as the National Investment Commission, the Rubber Development Fund Incorporated, and the Rubber Planters Association of Liberia. Firestone Liberia and other major processors are also members, tasked with determining and publicly posting the official monthly price of rubber.
"This initiative marks a turning point for Liberia's rubber industry," Agriculture Ministry officials said during a formal signing ceremony held Saturday at the Ministry's headquarters in Monrovia.
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According to documents obtained by The Liberian Investigator, the new pricing formula will calculate the monthly rate based on the average daily price per ton on the Singapore Commodity Exchange. It will be adjusted for a 58 percent dry rubber content, with production costs subtracted and a 10 percent profit margin factored in for processors.
New System to Start June 2025
Beginning the last week of June, the committee will announce the official price for each upcoming month. The rate will be published in national media and posted at all rubber purchasing points to ensure widespread compliance.
Buyers who fail to adhere to the set price will face penalties, including potential legal action. The committee has also reserved the right to revise the pricing formula to reflect market realities or operational challenges.
Push for Executive Order on Unprocessed Rubber Exports
In a related move, the committee plans to recommend that President Boakai issue an Executive Order imposing a surcharge on unprocessed rubber exports. The goal is to incentivize local processing and secure raw materials for domestic factories, bolstering Liberia's industrial growth.
Rubber remains one of Liberia's most significant export commodities, but price instability and limited domestic value addition have long hindered the sector's development.
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Stakeholders welcomed the government's action as a step toward restoring confidence among farmers and investors alike.
"This is a bold and necessary step," said one senior member of the Rubber Planters Association. "For too long, smallholders have been at the mercy of an unpredictable market."
