First global rubber confab:

'Lanka mulls polymer hub status'

By supplying natural and synthetic rubber in parallel, there is a likelihood of Sri Lanka becoming a 'polymer hub', or at least a 'natural polymer hub', Industry and Commerce Minister Rishard Bathiudeen told the Global Rubber Conference 2014 (GRC) at the Cinnamon Grand on Tuesday.

"With Sri Lanka's reputation for quality natural rubber, I believe that is a viable option that we all can explore and implement," he said.

Over 250 delegates from 28 countries (including ASEAN, US, EU, East Asia and North Asia) were present.

Key stakeholders of the event in Sri Lanka were the Ministries of Industry and Commerce (MIC), and the Plantation Industries, with the Export Development Board EDB being the co-sponsor with Confexhub, Malaysia.

The annual GRC is one of the world's leading confabs on natural rubber and its products. This is the fourth GRC to be held.

Economic Development Minister Basil Rajapaksa, Chairman, Confexhub Sdn Bhd - Malaysia, Dr. Abdul Aziz,), Secretary, MIC, Anura Siriwardena, Chairman and CEO, EDB, Bandula Egodage, Director General, EDB, Ms Sujatha Weerakoon Director General, Commerce Department, R.D.S. Kumararatne, top government officials, rubber industry representatives from manufacturing and export sectors were also present.

"Encouraging news on the local and international natural rubber trade was reported recently. The local good news was the increase in the certified price for rubber and increase in cess on rubber imports. The international good news according to visiting global investment strategist Dar Wong, is that rubber prices would be steady at around US$ 2 upto 2015

After 2017, the price of a kilo would go above US$ 3," the Minister said.

"World Natural Rubber production too has shown an increase in 2013. Global tyre sales have increased by 21% to US$ 187 billion in 2011 and continues to increase. The Government is aiming at a US$3 billion rubber industry in the coming decade," he said.

"Despite challenging global market conditions and energy cost pressures not only has Sri Lanka's rubber sector has been resilient, it also shows signs of expansion.

The cost of production per kilo of rubber which was around US$1 in 2012, showed only a slight increase in 2013 by moving up to US$1.15. Average yield per hectare was 1,247 kilos in 2013 and in this regard, we rank above some other producers in the region. We also rank on a par with the world average yield per hectare as well," Minister Bathiudeen said.

"In the past five years, the number of registered private companies operating in rubber sector has increased by 48 percent, to 251 from 169 registered firms in 2009.

The extent under rubber cultivation has also increased by 9.4 percent in 2009 to 133,600 hectares in 2013. Sri Lanka exported natural rubber worth US $ 72 million and finished rubber products worth US $ 887 million in 2013. The overall total of US$ 960 million is a 100% increase, compared to 2009," he said.

"My Ministry has commenced important initiatives for this sector at a cost of more than US$46,000. As global industry experts you too would agree that innovation in this sector is the way forward," the Minister said.

"There is an increasing global demand for 'green rubber'. With your support Sri Lanka can position itself as a top 'green rubber' supplier to the global market," he said.

"Sri Lanka can become a polymer hub," said Senior Economist, Development Prospects Group, Washington office of the World Bank, John Baffes.

"Sri Lanka has the capacity to produce a diverse range of natural rubber.

Sri Lanka can increase its rubber exports by creating a polymer hub for value addition and wider commoditisation of this material," he said.

"The GRC was initiated by the EDB," said Chairman and CEO, EDB, Bandula Egodage. "Our exports are in a transformational stage -from traditional to non-traditional.

This is why we have become a leader in rubber tyres. GRC is an opportunity for rubber opinion leaders, experts, investors, industry leaders and other stakeholders to meet and share their experiences.

It also gives a great opportunity for our rubber industry, which has two aspects - plantation and manufacturing," he said.

Chairman, Confexhub Sdn Bhd - Malaysia, Dr. Abdul Aziz said, "As a result of the introduction of rubber to South Asia, research facilities were also set up here.

As a result, in 1909, the Rubber Research Institute (RRI), the oldest in the world, was set up in Sri Lanka." "As a result of this research facility, the rubber disease that threatened Sri Lankan production, was eradicated.

Due to their breeding program, they produced the RRIC 103 rubber variety that withstood the disease. It is important for the rubber industry to meet challenges," he said.

The GRC closed on Thursday after many in-depth technical sessions and briefings by international experts and reputed speakers.