Import of natural rubber banned

The Government banned the import of natural rubber and imposed an additional tax of Rs. 5 per Kg. on import of artificial rubber. The decision was taken at a meeting held recently at the Presidential Secretariat.

The government has taken this step to assist the rubber industry at this crisis situation in the face of the global economic crisis. Rubber prices continued to decline at the Colombo Auction.

The rubber prices recorded at the January 29 auction are; TPC1 Rs.128, TPC2 Rs.123, TPC3 Rs. 120, RSS1 138, RSS2 Rs. 136, RSS3 Rs. 129. The farm gate price of rubber has dropped to Rs.60-70, sources said.

Due to the declining trend in natural rubber prices at the auction rubber traders are uncertain of the price they should buy rubber. The government expects that the new import restrictions will boost the domestic demand for natural rubber. (GW)