rubber prices not sustainable
Colombo Rubber Traders' Association (CRTA) Chairman Amanda Weerasinghe
called on the rubber manufacturers to take advantage of the local
rubber prices, which are still above world prices and follow an
aggressive marketing strategy to sell their rubber.
the CRTA's 85th Annual General Meeting recently, he said,"the
local rubber prices are still above world prices, and it cannot
be expected to be sustained any longer and would fall back in line
with the world market prices before which the traders have to act."
kilo of Ribbed Smoked Sheet rubber is around Rs.135 in Sri Lanka
whereas in the Singapore Commodity Exchange it trades at the equivalent
of around Rs. 128.
said, "the government should play a major role in directing
Sri Lanka as a hub for rubber in the region." The government
should maintain its promise of maintaining low interest rates and
implement export cess for rubber.
said that many industrialists do not have funds to implement inventive
strategies that are needed to increase their rubber production such
as using various types of tapping technologies and called on the
government to intervene.
Minister Sarath Amunugama who was the Chief Guest at the AGM assured
government support for the rubber sector and said that the government
is focussing on creating new small and medium private sector companies
to develop infrastructure, which can help many sectors including
the rubber sector.
said that rubber manufacturers will have to play a major role in
boosting production and combine with related institutions and small
and medium projects. "You
are an important part of our economic policy framework as your industry
reaches rural people who are at the focal point of our economic
policy," Amunugama said.
Industries Minister Anura Priyadarshana Yapa who was the guest of
honour, assured more support and incentives for the rubber sector
and said that the government would intervene only if the private
sector cannot solve problems by themselves.
said that in order to increase Sri Lanka's share in the global market
the current annual production has to be increased by 100,000 metric
tonnes. "The government has decided to grant a replanting subsidy
of Rs 100,000 per hectare and initiate Free Trade Agreements which
the rubber traders can make use of," he said urging the entrepreneurs
to take the initiative to implement new technology and turn rubber
into a manufacturing industry.