Subsidy cover for rubber producers

Declining rubber prices have prompted the Government to offer a subsidiary of Rs. 20 a kilo to producers, officials said.

They said Parliament will next week take up a motion seeking approval for a supplementary estimate of Rs 450 million to provide this subsidy. Rubber prices at the Colombo auction have been declining since July last year with prices falling from Rs 336.75 a kilo to Rs. 143 by February this year.

The supplementary estimate has been approved by the Cabinet on a proposal submitted by Plantations Minister D.M. Jayaratna.