ECONOMYNEXT – Sri Lanka is considering controlling rubber imports for export industries in a bid to keep domestic rubber prices up, Cabinet spokesman Minister Bandula Gunawardana said.
Sri Lanka export industries approved by the Board of Investment are allowed to import rubber when required. Some tyre firm in particular need lower grade rubber which are not available in sufficient quantities.
Plantations Industries Minister Ramesh Pathirana had informed cabinet that authorities were looking to control rubber imports to keep domestic prices up, Gunawardana said.
Sri Lanka’s latex prices in particular had dropped reducing incomes for farmers, he said.
During the Coronavirus crises demand for latex (liquid rubber sap) went up as demand for gloves went up.
Global rubber prices in Malaysia and Thailand have also dropped in recent weeks.
Global rubber and other commodity prices went up steeply as US Federal Reserve chief Jerome Powell printed money to ‘create jobs’.
The commodity bubble is now easing with US monetary policy being tightened. Sri Lanka’s tea prices which went up in dollar terms as well as in rupee due to a currency collapse is still holding.
Tea prices tend fall in dollar terms with a delay compared to other commodities. (Colombo/Oct05/2022)