Rubber Prices Reach an All Time High at the Auction

30th March 2010, www.dailynews.lk

A kilogram of rubber fetched Rs 363.25 at the auction. Sri Lanka is the main exporter of rubber to many countries including China and India. They are the biggest manufacturers of tyres in the region.

There has been less rubber production as many of the countries faced a dry weather.

Even the largest rubber producer in the region, Thailand is also affected due to the prevailing dry weather, Colombo Rubber Traders Association Chairman M.S. Rahim said.

'Due to the dry weather, production dropped drastically.

There will be a drop in demand in the future if this weather continues. Most of the rubber manufacturing countries have faced the same situation, Rahim said.

He said last year out of the total rubber production in the country, over 60 percent was used for the local industry. The industry expands to a land extent of 122,000 hectares in the country.

The total exports of natural rubber in the country amounted to 55,990 metric tons last year.

Sri Lanka exports only white crepe rubber which has a good demand in the world market.