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Sri Lankan industry wants more budget support for rubber production

Aug 02, 2018 17:40 PM GMT+0530 | 1 Comment(s)

ECONOMYNEXT – Sri Lankan manufacturers of natural rubber products have urged the government to allocate more money for rubber cultivation in its budget for 2019 to revive dwindling production.
 
The Sri Lanka Association of Manufacturers and Exporters of Rubber Products (SLAMERP) said in a statement the rubber industry is the fourth largest export sector in the country with total sales of almost a billion dollars.

It has major growth potential and the ability to further diversify its product base, it said.

In 2017, Sri Lanka’s rubber product exports were estimated at US$855 million, up about 11% from the year before. 

However, the rubber production in the country grew only 7% to 85,000 tons in 2017, with the local demand for rubber being almost 130,000 tons.

SLAMERP chairman Prabhash Subasinghe one of biggest challenges the industry is facing is the availability of raw material for value added production.

He urged the government to help in increasing yields through research and development support and expansion of rubber plantations to meet international demand.

The industry today has to depend on raw material imports owing to a decline in local production, he said.

“We are working closely with all government authorities to overcome this challenge and we have requested the support of the government to increase the rubber plantations and allocate money for the sector in the upcoming budget for 2019.”

Subasinghe also said technological advancements and testing facilities is key requirement that needs to be enhanced to improve the industry’s international competitiveness.

SLAMERP recently held a rubber testing workshop with the Rubber Research Institute (RRI) and the Export Development Board (EDB).
(COLOMBO, 02 August, 2018)
 


 

1 Comments

  1. Tilak August 03, 10:44 AM

    Points to ponder.1).Yes ,Local Rubber production as mentioned has dropped dropped .2).Reasons for the local Rubber production drop is the Lower prices offered by the industry to local rubber producers consequent to cheaper priced imports from the foreign markets,Non availability of wedesides chemical fertilizers +labour shortages.3)Consequent to the combine effect of the (2) above not only estates are in shambles but people leaving to other areas,the latex collection systems developed over many decades too got dilapidated, whilst many rubber trees are uprooted for other purposes.4)Concurrently the SL rupee has been falling increasing the price of imports,whilst any price increase in the foreign markets(so far not happened) coupled with the USD prices, would certainly result in experts vomiting words theorising how to save the rubber manufacturing industry in SL. Now without going too far away from home look the Indian market for some clues with regards to rubber prices there.We briefly consider prices in Kottam(local market RSS1 USD1.92) vs Bangkok USD 1.50 foreign markets).So Indian plantations can will continue would step forward in the event of any price hikes in the foreign markets not allowing them to crash.At present the massive Rubber Industries there has cleared the entire local production a higher price whilst getting down only the shortfall from foreign markets.So how to describe the two would be scenarios after a decade in simple words.

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