Govt. prepares to implement Rubber Master Plan
The Sri Lanka government has commenced work on the implementation of the Rubber Master Plan crucial for the development of the sector aimed at increasing yields while taking a pragmatic decision not to interfere in pricing.
With the rubber industry facing a number of issues the government has appointed a committee to look into the implementation of the Rubber Master Plan in a bid to initiate its proposals, Sri Lanka Association of Manufacturers and Exporters of Rubber Products Director General Rohan Masakorala told the Business Times on Thursday.
Middlemen causing issues to manufacturers has led to some concerns in the industry that if these persons attempt to artificially increase prices of rubber raw materials through political influence it could discourage any foreign investments in this sector.
However, at present manufacturers are said to have explained this issue and have obtained government assurance that such artificial price increases would not be carried out in future, Mr. Masakorala said.
Sri Lanka is currently facing a serious shortage in raw materials and has poor productivity and yield compared to other markets.
The industry is currently attempting to achieve 77,000 MT of rubber but still needs to import as the total requirement for Sri Lanka for both its domestic and export markets is 150,000 MT.
Value addition has raised the country’s revenues from rubber exports to US$900 million from a much lower value if exported in raw form.
Sri Lanka’s yield per hectare is only 600 kg compared to world standards that dictate it should be 1800 – 2000 kg per hectare and the average best is stated at 1600 kg per hectare, Mr. Masakorala noted.
But the execution of the master plan would enable the industry to obtain a higher yield and increase productivity, which authorities have agreed to expedite, he said.