Udugampola at helm of Rubber Traders Association; falling prices growing concern

Friday, 28 October 2022 00:00 - - {{hitsCtrl.values.hits}}

By Darshana Abayasingha

Manoj Udugampola took over as Chairman of the Colombo Rubber Traders Association (CRTA) last week, and called on collective action from the industry and authorities to combat the impact of leaf disease. With rubber production last year dropping to 76,800 MT last year, from a figure of 152,000 MT in 2011, Udugampola noted that alongside disease the falling price of rubber would result in negative growth for the industry this year. Crate rubber, which is considered the purest form of rubber, was sold at Rs. 1,450 per kilogramme until recently, but has now dropped to Rs. 600 a kilo.

Udugampola took over as Chairman of the CRTA at its 103rd Annual General Meeting, with Agriculture Minister Dr. Ramesh Pathirana as its Chief Guest. Addressing the gathering, Dr. Pathirana admitted he had expected a “more severe beating with regard to the Government’s erroneous decision to ban the import of chemical fertiliser,” and commended the rubber and agriculture sectors’ exceptional performance despite the difficult times.

“The plantation sector suffered heavily though that decision was made with different intentions. Despite the fertiliser fiasco and even the pandemic, production was reasonable and with manufacturers working continuously we were able ensure the country was receiving much needed foreign exchange,” he said. Dr. Pathirana added that the Government has at times infused as much as Rs. 50 billion annually to offer subsidies and benefits to the agriculture sector, but noted there is a fine line between protecting growers and encouraging manufacturers who require raw material imports.

Outgoing CRTA Chairman Amanda Weerasinghe noted it imperative to adapt to changing times, and stressed the need for fresh perspectives to steer a new course for the industry. He called on the industry to work together at all times and not show concern only when there is a need to repair damage. Weerasinghe also expressed concern at the lack of falling prices, and attributed unsustainable pricing, slowdown of the global economy as contributory reasons.

“It was most unfortunate that we have lost markets due to sellers commanding unreasonable premiums for specialised rubbers. Our buyers were forced to switch to synthetic rubbers. The industry must collaborate to cocreate the goals and standards that are mutually beneficial to both buyers and sellers. There are far more sellers than buyers now, and we need to come together and rewrite our functions so that they best serve every one of us,” Weerasinghe said.

- Pix by Upul Abayasekara -