The Liberian Senate is Pushing for the establishment of Rubber Board to Regulate Prices Amid Divided Views on moratorium placing a ban on the exportation of unprocessed rubber.
The Liberian Senate has turned its focus towards the creation of a national rubber board aimed at regulating the prices of rubber commodities on the market.
This decision follows an in-depth investigation by the Senate Committee on Agriculture, which recommended the establishment of a board to oversee and regulate the price and activities related to rubber commercialization in the sector.
Following a contentious “Yea and Nay” vote, the Senate Plenary agreed to maintain the current moratorium on the export of unprocessed rubber until the proposed national rubber board is established.
The Agriculture Committee’s report, which sparked extensive debate, was mandated to collaborate with all stakeholders to draft legislation establishing the national rubber board and ensure market stability through appropriate regulations.
The moratorium, introduced by Executive Order 124, has been a source of significant controversy. Issued in 2023 by former President George M. Weah.
The order aimed to curb abuse and theft within the rubber industry. However, the policy has polarized stakeholders, with some arguing that it negatively impacts smallholder rubber farmers and brokers who rely on trading unprocessed rubber. Conversely, others believe the moratorium is crucial for fostering value addition and creating more jobs in the rubber sector.
The policy traces its roots to similar executive orders—Numbers 16, 50, and 60—implemented during former President Ellen Johnson Sirleaf’s administration for the same reasons.
Despite this historical precedent, the current debate reveals deep divisions among lawmakers and industry stakeholders.
The Senate’s Committee on Agriculture, chaired by River-Cess County Senator Wellington Geevon Smith, engaged in weeks of discussions to gather insights and justifications from opposing viewpoints.
The committee’s findings indicated significant concerns among rubber planters about the capacity to handle unprocessed rubber and the potential reduction in workforce if the moratorium remains in place. Additionally, the report highlighted issues with tax remittances from small rubber farmers not reaching government accounts.
In its recommendations, the Senate Agriculture Committee emphasized the necessity of establishing the National Rubber Board through legislation, with representation from all stakeholders.
The proposed board would ensure equitable monthly pricing of rubber and encourage rubber factory owners to operate at full capacity, thereby preventing market manipulation.
Furthermore, the committee called for Liberia to align with regional standards by enacting laws controlling the export of unprocessed rubber. It also recommended that the executive order maintaining the moratorium should stay in effect until the legal framework is established to guarantee total stability in the rubber sector.
Today’s lengthy plenary session saw senators presenting arguments both for and against maintaining the moratorium.
While some lawmakers supported the moratorium to bolster the local rubber industry’s value addition and job creation, others voiced concerns about its adverse effects on small farmers and brokers.
Despite these divisions, the Senate’s ultimate decision underscores a commitment to creating a more regulated and stable rubber market through the proposed National Rubber Board.
