Aug 14, 2015
Introduction to the Industry In 1867 introduced by British men Sir Henry Wickham was
planted 1st rubber tree in Henarathgoda Botanical Garden Gampaha.
Mostly growing in Kegalle ,Rathnapura & Kaluthara
Mainly produces 2 categories of rubber in the industry
Natural rubber
Synthetic Rubber
Currently produces around116 ,000 MT of Natural Rubber per year
10th largest producer of rubber in the world and 6th largest in Natural Rubber
1.08% of global production of NR Source –Association natural rubber producing countries 2014
Main grades of NR are Ribbed smoked sheets(RSS), Different type of Crepe rubber, Technically specified rubber(TSR) & latex concentrate
Mainly industry manufactures Pneumatic and solid tires and other manufactures gloves , mats ,footwear's ,meters & etc.
Tires -60% of exports Gloves _30% of exports Others -10% exports Sri Lanka produces rubber & rubber products for
International brands such as CONTINENTAL, SOLIDEAL, WONDER GRIP, SAFETY WORK, etc.
Exports earnings USD 70.50MN(jan to sep 2014 annually & growing steadily
Products
Source- Export Development board/Department of rubber development FAO web site
Market Annually Global industry grows 4% -6% Major exporting countries are
USA ,Germany ,Belgium ,Italy ,UK Semi processed rubber destinations are Pakistan,
Malaysia, India, Japan & Germany
Source –Export Development Board
Environment Analysis for Industry
Political Environment
opportunitiesMaking economical agreements with foreign countries. Encouraging employeesProvide subsidies
challengesEconomical barriersInfluence of pressure groups like unions.
Economical Environment
Opportunities
Reduce tax from exportersGovernment support for small rubber holdersGiven fixed price for natural rubberEmerging markets and expansion abroad marketsIncreased importers tariff & non tariff barriers
Challenges
Decline in the prices of NR Import of rubberProduce rubber within main export countries
Source-Sri lanka Export Development Board /Department of Rubber Development
Socio cultural environment
OpportunitiesEnhance quality of life through developing infrastructureStartups rubber tapping training programs
ChallengesSmall rubber lands % minimize due to urbanizationShortage of skilled rubber tappers for NRDue to market price decreases industry workers lost their joblabors are not willing be the workforce of plantation sector
Technological Environment
OpportunitiesAutomation of production processes.Improved quality of parts & end products.Significant cost savings.
ChallengesHigh cost of introducing new technologyDifficult to make machines to tapping rubberLow interest of the rubber small holders in utilization of new technologyShould find new rubber clones
Environmental Factors
OpportunitiesExpanding rubber cultivation to non traditional areas.High degree of environment friendliness through the natural forest cover provided by the rubber plantations and substantial carbon sequestering.
ChallengesEnvironmental pollution due to value addition operations in industriesLimited land for growing NRRubber industry consumes large volumes of water, uses tone of chemicals and other utilitiesProduction of NR heavily depends on weather conditions
.
Legal Factors
Rubber Replanting Subsidy Act No.36 of 1953
Rubber replanting ,rubber new planting intercropping, modernization of rubber factories and system control
Rubber Control Act No.11 of 1956
Registration of all rubber estates and small holdings
Issue of permits for new planting and replanting of rubber
Issue of permits to rubber manufactures
Issue permits for rubber dealers Regulations for Cess made under the Rubber Replanting
Subsidy (Amendment) Act No.20 of 2006.
Source –performance report of 2011-2012 Rubber development Department
Recommendations for improve industry Construct the most efficient facilities in terms of scale or technology.
Replacement of aging rubber tree stock and factories. Use the low cost production advantage to keep out
competition. Revising Cess Levy in respect of the decline in the
price of rubber Taking necessary actions to set a fixed price for rubber
and practiced it. Use its cost leadership position to penetrate the
market & develop brand loyalty. Develop marketing network
Provide technical exposure to SME manufactories. Through technology that would create various products to
export rather than exporting raw rubber or rubber sheets(value addition)
Source –Ministry of plantation industries strategic plan 2011-2015-Export Development Board Rubber Development board reports