Sri Lanka’s Plantation Minister Mahinda Samarasinghe has called for a special stakeholder forum to discuss the present crisis situation faced by the country’s rubber sector originating from lower demand at the international market place.
According to Colombo Rubber Traders Association (CRTA), the rubber auction prices have fallen 50 percent over the last three years. The current latex rubber price (latex crepe 1x and 1) hovers around Rs.300-320 per kilo whereas the prices were at Rs.600 in 2011.
“The rubber industry is not doing that well. Therefore, I want to start a forum where all industry stakeholders could come together and discuss the present issue on a continuous basis until the situation gets better,” Minister Samarasinghe, delivering the keynote address of the 95th Annual General Meeting of CRTA, said.
Smallholders produce the majority of Sri Lanka’s rubber output—about 63 percent— while estates including the Regional Plantation Companies account for the rest.
According to CRTA Chairman M.S.Rahim, natural rubber prices are expected to decline further as a result of slowdown in major economies, excess production coming from new producers and the stockpiles which are estimated at 300, 000 tonnes in China, the largest consumer of natural rubber.
According to the Central Bank, Sri Lanka’s rubber production declined by 14.2 percent to 130, 421 metric tonnes in 2013 compared to 2012. In 2011, the rubber output stood at 158, 000 tonnes.