Rubber industry to bounce back

For many years, the rubber sector in Sri Lanka has been a significant contribution to the country’s economy. The rubber sector employs around 1.5 million people and accounts for approximately 2.5% of the country’s GDP, according to the Rubber Research Institute of Sri Lanka (RRISL). 

Last year, Sri Lanka generated around 900 million dollars from rubber exports alone. According to some predictions, this will rise by 3 billion by 2025. However, the industry has recently faced a variety of problems that threaten its long-term viability.

The drop in global rubber prices is one of the most significant difficulties confronting Sri Lanka’s rubber sector. According to International Rubber Study Group (IRSG) data, the average price of rubber declined by around 25% between 2014 and 2018. This has severely reduced the revenue of rubber producers and smallholders, many of whom are trying to make ends meet. 

Another key concern for the Sri Lankan rubber sector is increased competition from other rubber-producing countries such as Vietnam and Indonesia. According to the IRSG, these countries have increased their rubber production in recent years, resulting in a global rubber surplus. This has pushed down prices even lower, making it more difficult for Sri Lankan rubber farmers to compete.

The rubber sector in Sri Lanka is also confronted with the issue of aging rubber trees and a lack of replanting. Rubber is grown in the huge Wet Zone, as well as certain areas of the Intermediate and Dry Zones. Rainfall, temperature, evaporation, relative humidity and wind are all important climatic conditions for the effective development of rubber. 

According to RRISL, around 55% of Sri Lanka’s rubber trees are over 25 years old and in need of replacement. This is an expensive process, and many smallholders do not have the funds to replant their rubber farms. Weeds can also serve as habitats for a variety of rubber pests and diseases. Weed control is essential in rubber plantations. Rainfall is crucial for the establishment and growth of crops in the tropics.

Another challenge impeding the growth of the Sri Lankan rubber sector is a lack of sufficient infrastructure and services. According to the RRISL, many of the country’s rubber processing factories are obsolete and in need of upgrading. This makes meeting international standards and competing in the global market challenging for the sector. 

Despite these problems, there are some encouraging advances in Sri Lanka’s rubber sector. The Government has put in place a number of laws and programs to help the rubber industry. The Rubber Development Department of Sri Lanka has been offering training and extension services to improve the livelihoods of rubber growers and smallholders. The Government has also initiated a replanting program in order to increase rubber tree plantation and output. 

Furthermore, the private sector is undertaking numerous activities to develop the rubber business in Sri Lanka. This includes the creation of new goods and markets, as well as the promotion of environmentally responsible and sustainable rubber production processes.  Plantation management requires creativity. We can explore promoting rain barriers for rubber trees to mitigate the impact of rainfall on production risk. Rubber tree rain guards are efficient at protecting latex yields during the wet season, increasing latex yields by up to 77%.

The rubber business in Sri Lanka is therefore braving numerous obstacles, albeit with numerous beneficial improvements. To solve the concerns of worldwide price decline, lack of replanting, lack of suitable infrastructure and competition from other rubber-producing countries, the Government and corporate sector must collaborate. 

The rubber sector in Sri Lanka has the potential to expand and thrive in the future with the correct support and investment. It is critical for the Government to collaborate closely with industry stakeholders in order to identify long-term solutions to the industry’s difficulties.