Rubber industry poised for growth

Vishmi Wijeratne

Due to the latest auction prices evoking a glimmer of hope to the Sri Lankan rubber industry, Director of Forbes and Walker Commodity Brokers, Damitha Perera told the Daily News Business that there had been a rise of Rs.25 to 30 per kilo, compared to the auction prices in December 2012. He said that he expected this situation to last for a further considerably time.

"The international markets were improving, thus auction prices were also improving. Most of the improvements in auction prices were due to the demand from Japan and regional markets," Perera said.

Though improvements on auction prices may seem marginal compared year on year, according to Perera, there had been an improvement throughout last week and he expects it to last thoughout the first quarter of the year.

"The month of March may be a bit of a bleak month, as it was the winter season and the supply would tend to cause difficulties, however this is not unexpected, this was a pattern that continues year after year.

According to reports, Latex Crepe 1x traded at an average price of Rs. 400 per kilogram, which had been a significant increase from December's Rs.382 per kilogram.

Meanwhile according to the chairman of the Rubber Traders' Association, M. S. Raheem, the prices at the auction for the moment are good and stable. However Raheem said that the industry may grow better or worse it depends on time but at present it the prices are good.

"The prices are at a considerably good standard and it is according to my view at its best. The country's performance in the previous year had been outstanding and we could achieve more if the currency remained stable," Raheem said.

Commenting on the industry, Raheem says that the labour force was less and the amount of rubber crops would decline in the years to come and the area would be a good focus for 2013 to develop the rubber industry much further.