Sri Lanka government has taken prompt measures to control rubber imports for export industries in a bid to keep domestic rubber prices up, State Minister of Finance Ranjith Siyambalapitiya said.
Sri Lanka export industries approved by the Board of Investment are allowed to import rubber when required. Some tyre firm in particular need lower grade rubber which are not available in sufficient quantities.
Plantations Industries Minister Ramesh Pathirana had informed cabinet that authorities were looking to control rubber imports to keep domestic prices up.
Sri Lanka’s latex prices in particular had dropped reducing incomes for farmers, he said.
State Minister of Finance Ranjith Siyambalapitiya yesterday said measures taken to control rubber imports for export industries has successfully stabilized the domestic prices.
“The unlimited rubber imports were a major hindrance to stabilize the domestic rubber prices.
Following strict regulation, we now see a drastic drop in rubber imports,” he said at the second progress review meeting of the committee appointed to investigate the decline in domestic rubber prices and excess imports.
A Committee was appointed to look into the circumstances surrounding local small-scale rubber growers’ inability to sell their products comprising representatives from the Ministry of Plantation Industry, the Chamber of Commerce, and the representatives of institutions including the Rubber Development Department,
The import of rubber which was at 4,058 tons in October has dropped by 48% to 2,126 tons in November. Total import of rubber has decreased by 77% as of 10 December. Total imports of rubber till 10 December is at 162 tons, the Ministry stated.
During the Coronavirus crises demand for latex (liquid rubber sap) went up as demand for gloves went up.Global rubber prices in Malaysia and Thailand have also dropped in recent weeks.
Global rubber and other commodity prices went up steeply as US Federal Reserve chief Jerome Powell printed money to ‘create jobs’.
The commodity bubble is now easing with US monetary policy being tightened. Sri Lanka’s tea prices which went up in dollar terms as well as in rupee due to a currency collapse is still holding.
Tea prices tend fall in dollar terms with a delay compared to other commodities.
