Sri Lanka will regain its rightful place in global rubber – Indian Board Chief

Monday, 16 July 2012 00:00 - - {{hitsCtrl.values.hits}}

By Cheranka Mendis

Rubber Board of India Chairperson Sheela Thomas last week expressed confidence that Sri Lanka will regain its rightful place in global rubber industry.

“Sri Lanka has been and continues to be a pioneer in high quality latex rubber. Also the rubber cultivation is said to be expanding and productivity increasing, if slowly but steadily.

I believe that Sri Lanka will soon regain its rightful place among the rubber producing countries of the world,” said Thomas who was the Guest Speaker at the Annual General Meeting of the Ceylon Rubber Traders Association (CRTA) held on Friday.

She said trading in commodities including rubber has become very challenging in the recent years due to the uncertainty and volatility in the market. However Thomas noted development in transport and communication, integration of regional markets, growing role of futures trading and structural changes in the rubber sector have helped the industry stay ahead.

“Trading strategies must now be reoriented and collaborated to suit the changing needs of both buyers and sellers. Associations such CRTA has a major role to play in capacity building of stakeholders and facilitating trade,” Thomas pointed out.

CRTA Chairman M.S Rahim who was re-elected at the AGM declared that the Sri Lankan rubber industry has had mixed fortunes in 2011 though there have been signs of revival in 2012.

“In 2011 very good prices were established. We had record prices of over Rs. 600 in Crepe 1X while RSS1 maintained prices of over Rs. 500 per kg up to September 2011. However from September onwards the market turned due to continued economic problems faced by the Western countries, hardships faced by members of the European community and the general slowdown in all countries in the region. This attributed to prices dropping steadily till the end of the year to reach the lowest level on all ranges of our rubber grades,” Rahim recalled.

According to him the dawn of 2012 saw prices recover with Crepe prices increasing and fetching prices close to Rs. 400 and above while all grades obtaining higher prices.

“Overall average prices obtained were profitable. Although the price of Crepe rubber 1X was Rs. 360 as at 31 December, New Year saw prices of Crepe rubber increase to reach Rs. 480 as at 31 March 2012,” the CRTA Chief added.

Meanwhile production of rubber in the country continued to increase to reach close to 158,000 tons, which was a 3.21% increase over the previous year. Total extent cultivated during the period was 127,000 hectares, he said. The total area replanted was said to be 2847 hectares of which new planting area was mentioned as 1534 hectares.

On the exports front, a decline of 17.27% was recorded with the year ending in December 2011 recording 42,606 tons as against 51,503 in 2010; a drop of 8,896 tons.

Domestic consumption was also low unlike the previous years. “In 2011 domestic consumption was 110,735 tons, 3.27% increase from 2010. It is a fairly small increase compared to the rapid growth in 2008, 2009 and 2010.” Increase in consumption reflected in latex with 2700 tons and dry rubber being only 810 tons.