Sri Lankan rubber earnings decline in July

Sri Lanka has seen a decline in export earnings from rubber and rubber finished products in July this year by 3.16 per cent to US$76.8 million, according to the Export Development Board (EDB).

Exports of Pneumatic and Retreated Rubber Tyres and Tubes have experienced a decline of 12.09 per cent. However, earnings from export of rubber products increased by 8.8 per cent during the first 7 months compared to the same period last year, The Forbes and Walker Rubber market report stated.

As a result of a shortage of tree laces for Technically Specified Rubber (TSR) production the government has allowed the temporary importation of Cup Lumps. The domestic demand for TSR stands at 60, 240 MT but production is limited to 17, 225 MT.

Meanwhile, the private sector has urged authorities to allocate 15, 000 H of land in non-traditional areas to cultivate rubber to boost production and thereby help mitigate the spread of the Pesta leaf disease. Identified areas are Moneragala, Kurunegala, Ampara and Padiyathalawa which are areas characterized by dry weather conditions.

The month’s average price for Latex crepe 1X increased by Rs.60. The average price of No. 1s rose by Rs.65/64 per kilo. No2s gained ground by Rs.62/35 whilst No 3 improved by Rs.09/05 and No 4 rose by Rs.45/25 per kilo. Demand for latex crepe was strong during the month.

Poor volumes of RSS came into the market due to the adverse weather experienced by most rubber planting districts and some smallholders diverting latex to centrifuged latex processing plants. Prices of all RSS grades went unquoted during the month.  (SD)