Rubber sector regenerated
by Ramani Kangaraarachchi
The Rubber Products Value Chain Core Group has seen a dramatic
progress in the rubber sector and positive of achieving the expected
growth target by 2007.
Senior Advisor International trade Centre (ITC) Ian Sayers said that
the group expects the annual export volume of rubber products in the
country could be increased up to 75,000 MT from the present 65,000 MT by
the end of 2007 and making the export target for 2007 USD 344 million as
the rubber sector has been regenerated under the sector strategy
development with the support of the Value Chain Promotion Component of
GTZ-Integration and the ITC.
It could also improve quality increase production and productivity of
enterprise mainly SMEs engaged in rubber products manufacturing and
small holder plantations at the supplier stage of the value chain he
said.
Having identified goals and key activities which are strategically
important for a stable growth of the sector the VCP formulated a
strategy outline underlining short term targets and main activities to
be undertaken by the stakeholders for the development of the sector.
The rubber sector was in closing down state as a result of not being
able to compete with Taiwan but with the value chain strategies
developed ,people have realised the benefits of working together rather
than as individuals.
National Advisor VCP Bernard Hettiarachchi said that the SME Rubber
Sector entrepreneurs have formed into a SME Association to better
co-ordinate and disseminate information for improvement within this
sector and they are now happy to hold prestigious membership and become
tax payers.
He said that the response shown by the SMEs to form a People's
Company was excellent and the VCP has offered assistance in logistics
relating to the formation of the People's company to strengthen the SME
rubber sector.
Hettiarachchi said that the vision of the VCP is to export more high
value added natural rubber based products to international markets
minimising natural raw rubber exports because the rubber products
industry has the potential to attain improved growth through expanding
their business to export markets and develop SME into indirect exports.
The VCP has suggested to achieve its strategic objectives through
sustained clustering, enhanced manufacturing and technological
capabilities ,improve supply side, attract and retain investment,use
rubber wood to supplement returns and work with the public sector as a
partner in progress.
It is estimated that an extra 8.5 million MT of rubber would be
required by 2020. |