Wednesday, June 16, 2010

Sri Lanka mulls planting rubber in former northern war zone

 The Sri Lankan government is considering planting rubber in the former war zone in the north to increase production and meet growing demand from local industries, the plantations industries minister said.
Mahinda Samarasinghe said the rubber research institute had identified an area north of Vavuniya and parts of Kilinochchi as potential rubber growing areas.
The areas are part of the island's dry zone which means rubber production will not get affected by rain as in the wet zone, where most rubber estates are now found.

They were also areas affected by the 30-year ethnic war which ended in May 2009 with the defeat of Tamil Tiger separatists.

"The rubber research institute thinks these areas may be suitable for rubber cultivation," Samarasinghe told a news conference.

"We've launched a programme to see if we can grow rubber there. The aim is to increase rubber production because right now the rubber crop is less than the demand."

Sri Lanka was once a big exporter of rubber but exports are now negligible compared with the world's top rubber exporters because production fell and demand rose from local industries, which now consumers most locally grown rubber.

Samarasinghe said he had held talks with local rubber industrialists who were clamouring for increased rubber production.

"The rubber industry says they have the ability to make more rubber products if raw material was available," he said.
"But they are now forced to import rubber because local production is not enough."

Local industries have also had to cope with record high rubber prices in recent months as production was disrupted by rain.

Samarasinghe said some 50,000 hectares are to be planted with rubber in southern Moneragala, also in the dry zone, under project launched a few years ago.

"Investors too are waiting for an opportunity to grow rubber."

(lankabusinessonline.com)

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