By Keishara Perera
The recent tumble of rubber prices, both in international and domestic markets are expected to pick up at least by the end of May, said Vice Chairman of Colombo Rubber Traders’ Association (CRTA) and Managing Director of Kegalle Plantations PLC, Sunil Poholiyadde.
“The reason for the slight dip in prices has been the falling rubber prices in the global market, especially those supplied by Thailand which represents 30%-40% of natural rubber requirement.”
He pointed out that commodity prices as a whole have come down due to the unfavorable weather conditions in the country as well as global events taking place. The recent natural disasters also affected main buyer Japan.
“We are heading towards the south-western monsoon, where tapping will end. However, we don’t expect to see a drastic drop in prices,” Poholiyadde added. He mentioned that the present supply cannot meet both local and international market demands, due to low production capacities in Thailand.
Damitha Fernando of Forbes and Walker said that prices were overdone in the market in the recent past. “Due to continuous rains, production has been quite low, but now the prices are stabilizing gradually,” he added. “We can expect the prices to come down to between Rs. 475-500 as long as there is no extensive damage to the crops.”
source - www.dailymirror.lk
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