Despite progress in NR business:
Challenges remain
N. Yogaratnam Ph D (London)
Chairman, Tree Crops Agro Consultants
The Rubber Plantation Industry of Sri Lanka has grown, developed and
survived 133 years, despite many challenges, the most devastating being
volatile global market, over which Sri Lanka has very little control.
Rubber extent
|
The NR market had been positive with
sheet rubber fetching about Rs. 265 per kg and crepe rubber
being in the region of Rs. 276 per kg at the Colombo
auctions, recently |
The total area under rubber in Sri Lanka increased marginally from
120,000 ha in 2007 to 122,000 ha in 2008 and to 124,000 ha in 2009 with
an increase of about 2,100 ha and 3,100 ha respectively, being mostly in
the Low Country Intermediate Zone viz Moneragala.
The re-plantings also increased in extent; 5200 ha in 2007, 1,000 ha
in 2008 and 3,600 ha in 2009, (see Box 1 ). It appears very unlikely
that the rubber new planting target of 40,000 ha in the non-traditional
areas could be achieved as desired, possibly due to several technical
and non-technical issues and therefore, have to be still contended with
the 11th position in total global rubber extent and global Natural
Rubber(NR) production.
Productivity
Rubber has witnessed a 10 fold increase in yield per unit area during
the last 133 years. The main reason for such an increase had been the
genetic improvement of Hevea planting material and rapid utilisation of
improved material by the industry.
At the beginning of the industry, unselected seedlings were used as
planting material and their yield potential ranged from 300 to 400 kg
per hectare per year.
Genetically improved clonal material now being recommended for
planting has an annual yield potential of more than 3000 kg per hectare,
when grown under optimum conditions, eg. RRI C 100, RRISL 200 and RRISL
2000 series clones, ( see Box 2 ).
Production
Sri Lanka had been the fourth leading global rubber procedure in
early ‘60s with a rubber extent of 270,000 hectares.
Rubber production which was about 155,000 mt in 1978, declined to a
level of about 90,000 mt in the mid ‘90s.
With rubber business showing signs of growth after the NR market
boom, total rubber production also reached a level of 117,000 mt in
2007, with an increased productivity of about 1100 kg.
The rate of growth in 2008 increased to 9.9 percent from 7.3 percent
in 2007 and to 5.5 percent in the first six months of 2009, despite the
expansion of mature area being minimal and the global economic melt down
in the latter part of the year.
The productivity has been showing an increasing trend to reach about
1,360 kg/ha. Productivity is however, much lower than 1,706 kg/ha,
recorded in India.
There still exist wide yield gaps (see Box 2). The present national
yield is less than 50 percent of the achievable and the corporate sector
yield is about 40 percent of the maximum potential.
Going by the standards achieved by other leading global rubber
producers and given the research and operational skills of scientific
and management personnel in Sri Lanka, it should not be difficult to
meet these targets, if genuine effort is made.
NR Market
The NR market had been positive with sheet rubber fetching about Rs.
265 per kg and crepe rubber being in the region of Rs. 276 per kg at the
Colombo auctions, recently.
Globally, NR suffered 4.6 percent fall in output in the first seven
months of 2009 ended July, according to an ANRPC report.
This appears to be mainly due to adverse climatic conditions; heavy
rains following dry winter, that had hampered tapping operations in the
major rubber growing countries; Thailand, Indonesia and Malaysia.
Further, these three countries adopted steps like production cut,
accelerated replanting program, export cut to stabilize the rubber
market and maintain it at remunerative level. These strategies are
expected to keep the global rubber market buoyant in the coming months.
There are also reports that economies of Europe and Japan have made a
turnaround and moved positively. The US economy is also on the revival
path and accelerated economic activities in the Asia- Pacific region.
These are indications of higher consumption of NR the world over and
the current buoyant market of over US$ 2.2 per kg may therefore, be
sustained in the future. Sri Lanka should therefore maintain the current
momentum in NR business.
Issues
Despite the impressive progress in rubber growing, the industry is
plagued by a series of vital issues such as: the incapability of the
aged tappers which can affect NR productivity the most, declining
planted area, labour shortage, uneconomic holding size (small holdings),
low land and worker productivity, high cost of production, inadequate
resources, social disparity, poverty in estates etc.
Way forward - research
Research should set a crop productivity target of 6,500 to 7,000
kg/ha/yr, breed clones for moisture stress tolerance, develop Transgenic
clones to improve/ alter the technological properties of processed
rubber, technique for development and rapid multiplication of identical
plants to realize the full yield potential of clonal material and
eliminate root stock effects, Technologies to reclaim degraded
unproductive and marginal rubber lands to the level of virgin productive
lands, Agronomic practices to expand rubber into the low-country dry
zone.
Should, re-scrutinize the approach to fertilizer use in mature
rubber. The industry can save million of rupees.
Develop harvesting systems with lower labour requirement, high intake
per tapper and unskilled techniques for harvesting by un-skilled
workers.
More innovative value added rubber products based on market
intelligence and the Internal rate of return of 40 - 50 percent to be
targeted on investment in research and development.
Plantation Management
Plantation Management should set a corporate sector crop productivity
target of 3000 to 3500 kg/ha/yr, Identify plantings / holdings with low
productivity levels and adopt non-conservative and more intensive but
effective technologies appropriate to the needs to boost productivity.
Introduction of GIS technology would provide the necessary back-up
information. Adopt enhanced annual replanting target of 5 percent in
view of the forecasted rubber market revival and go for RRISL 200 and
2000 series clone.
Move away from a conservative approach and adopt on innovative,
non-conventional and professional approach in plantation management,
Expand rubber planting in non-traditional areas and in un-economic tea
lands in the low and mid elevations with appropriate technologies,
Reduce the agro-chemical load by scientific manipulation.
Re-scrutinize the approach to fertilizer use in mature plantings.
Millions could be saved. Consider human capital as the prime source of
innovations, quality and production gains and which has unlimited
potential for investment, consider Corporate Social Responsibility (CSR)
not as a liability, but as the entire range of obligations that the
management has towards society; increasing the quality of life of
internal and external customers.
Recognize that continuous up-gradation of knowledge and skills are
crucial to maintaining and enhancing the human capital. Knowledge
management, to emerge as an innovative inter-disciplinary business
technology within the organisation, Develop a mechanism to guide estate
workforce out of their dependent mindset and made to feel proud citizens
living in dignity with the rest of the community.
Rubber should be recognized as a strategic crop and a national policy
and a master plan should be formulated for its development.
A national crop productivity target of 1,800 to 2,000 kg/ha/yr should
be set and strategies should be formulated to achieve it.
Provide adequate replanting and new planting fund and other logistic
support to ensure that the annual replanting and new planting targets
are achieved , Provide support to safeguard the small and medium scale
rubber products sector currently challenged by violent fluctuations in
the rubber market, Develop a mechanism to assess the knowledge and
skills requirement of the industry at national level and assign
training, the priority it deserves and provide adequate resources.
Encourage private-public sector partnership in research and
development and in management for long-term viability of the rubber
industry, formulate policies and strategies to achieve poverty reduction
among the estate worker community and the smallholders and to eliminate
social disparity in plantations.
Based on the emerging needs of the rubber industry, improvements to
the conventional style of management has been suggested with the
singular purpose of enhancing the long-term viability of the rubber
industry that has survived 133 years and to re-position ourselves and
regain the status we enjoyed in the past.
Emerging Asia will continue to be the world’s most dynamic region in
2009 and beyond driven by buoyant China and India.
Sri Lanka with its meagre contribution of less than 2 percent in
global rubber business, is also likely to benefit. |