Rubber prices soar as demand increases

By Nizla Naizer

Prices at the rubber auction last week soared above Rs. 209/kg spurred by an increase in demand from the private sector.

* Over 250000 kg sold in auction last week
* Prices above Rs. 200 / kg

Speaking to The Bottom Line, Rubber Development Department Director General Wimal Rubasinghe explained that quantities sold at the Rubber Auction last week was 258950 kg while the average quantity sold is around 100000 kg each week. The high prices are attributed to a shortage in supply of natural raw rubber to meet the demand of the local manufacturers.
“There has been an increase in the international orders for our rubber products,” he informed, “Primarily in the tyre, gloves and health related products manufacturing. This has led to a high demand in rubber,” he added.
While the proposed ban on natural rubber does not need to be implemented he stated that the local manufacturers who cannot meet their demand through the local manufacturers will have to obtain their natural rubber from countries such as India. The supply of natural rubber in Sri Lanka has been affected by the heavy downpour last month which made harvesting difficult.