The Colombo Rubber Traders’ Association (CRTA) stressed that the industry along with the government should come up with a proper mechanism to address the concerns of smallholders and plantation companies during times of rubber price decline to ensure sufficient supply to rubber products manufacturers.
CRTA Immediate Past Chairman Sunil Poholiyadde speaking at the CRTA’s 99th Annual General Meeting (AGM), held at the Ceylon Chamber of Commerce Auditorium yesterday warned that many of the smallholders would cease their production or look for other lucrative employment opportunities if prices continue to drop.
The small holder sector currently accounts for almost 70 percent of the rubber production in Sri Lanka. He said in 2016, the rubber price hit a low of nearly Rs.200 a kilo from a price level of almost Rs.600 a kilo in 2013.
Commenting on the drastic drop in rubber production in Sri Lanka, Poholiyadde noted that a decade ago, Sri Lanka produced almost 150 million kilos of rubber, which came down to almost 60 million kilos in 2016. He attributed the lower production to reduced prices due to external reasons and adverse weather conditions and lack of available land for rubber cultivation.
Nevertheless, Sri Lanka’s rubber production has increased up to 85 million kilos in the recent past, indicating a marginal growth. “However, it is only about a 40 million kilo increase compared to the last year,” he said.
Poholiyadde also highlighted the importance of expanding rubber cultivation into non-traditional areas. He pointed out that acquisition and alienation of the rubber land for urbanization and other industries as the major issue for the drop in production.
“I’m informed that close to 4,000 hectares of rubber land of regional plantation companies have been identified for acquisition for various industrial purposes.For those lands to come to the current productivity level, it will take at least a minimum of 10 years.”
Poholiyadde also mentioned that if objectives of Rubber Master Plan which was launched in 2006 to be achieved, a fair amount of production has to take place within the country even to attract or expand the current value addition.
Newly elected Chairman, of CRTA Amanda Weerasinghe speaking at the event urged the respective authorities to take these major issues into serious consideration and have a proper plan to move forward.
Every one of us doesn’t realize the importance of rubber industry potential or this profession. Rubber plays a significant role in Sri Lankans lives and it is high time for us to get together and take immediate actions to address these issues rather than blaming each other, Weerasinghe noted.
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