Govt. fast-tracks subsidies to boost rubber crop

Thursday, 23 December 2021 00:31 - - {{hitsCtrl.values.hits}}

The Government has decided to fast track the granting of subsidies for replanting and new plantings of rubber.

Previously, the Rs. 350,000 paid per hectare of rubber re-cultivation and Rs. 300,000 per hectare of new cultivation was disbursed via eight instalments spanning seven years. The new decision is to offer the subsidy in five instalments in addition to Rs. 14,000 per hectare incentive for cultivations, showing rubber plants up to 50 centimetres in growth within five years.

Plantation Minister Dr. Romesh Pathirana, who submitted the proposal which was approved by Cabinet on Monday, told journalists the move will encourage rubber cultivators by overcoming the shortcomings of the methodology currently in operation.

In 2020, rubber production rose by 4.6% largely due to attractive market prices and favourable weather conditions that prevailed in the second half of the year.

Although rubber production declined by 10% in the first half of 2020 due to less tapping days amidst mobility restrictions during the first wave of the COVID-19 pandemic and dry weather conditions in rubber growing areas, rubber production improved considerably by 23.2% during the second half of the year, supported by relatively favourable weather conditions.

As per the Central Bank data, among the major categories of rubber produced, sheet rubber production, which accounts for nearly 50% of the total production, grew by 4.6% to 39.1 million kg. However, the production of crepe rubber, which contributes 17% of the total rubber production, declined by 10.2% to 13 million kg in 2020.

Production of unspecified categories of rubber, which represents approximately 33% of the total production, recorded a significant increase of 14% to 26.1 million kg in 2020.

According to Central Bank, domestic consumption of raw rubber in the industrial sector decreased to 112.1 million kg while total rubber exports increased by 21.3%, year-on-year, to 15.8 million kg.

Record exports sole silver lining for SL

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