Record price for rubber

Indunil HEWAGE

The rubber price saw marked increase at the Colombo rubber auction held on Tuesday.

Speaking to Daily News Business a Rubber Development Department official said one kilogram of RSS-1, RSS-2 and RSS-3 at the auction on Tuesday recorded Rs 583, Rs 568 and Rs 560 respectively.

Nevertheless, during the second week in March, price of one kilogram of RSS-1, RSS-2 and RSS-4 and RSS-5 reported Rs 560, Rs 552 , Rs 545 and Rs 520 respectively.

"It is difficult to highlight specific reasons for the rubber price fluctuation at the auction. Varies in the supply and demand patterns is the main reason for this situation. But we know that small quantity of rubber is being exchanged at the auction and the bargaining ability of the people at the auction will be the decisive factor to decide the rubber prices at the market.

However, many rubber cultivators are reluctant to send rubber sheets to the auction due to high transport cost and brokerage. Consequently, end users manage to purchase one kilogram of rubber at a lower price against the stipulated price at the auction," the official said.

The official also added that rubber exports in Sri Lanka has not been affected by the recent tsunami in Japan.