Bangladesh rubber growers disappointed with lower prices

Dhaka, Bangladesh – According to the Bangladesh Rubber Board (BRB) and rubber producers, 67,939 tons of latex were produced in the country last year, up 58 per cent from 43,000 tons in 2021, driven by an increase in the number of gardens and acreages under cultivation.

Latex is a sticky, milky and white colloid drawn off by making incisions in the bark and collecting the fluid in vessels. It is then refined into rubber for commercial processing.

But growers are upset as prices in the global market were lower.

According to Syed Moazzam Hossain, chairman of Lama Rubber Industry, rubber processors collect latex at Tk 150 per kilogram while it was at least Tk 200 two years ago.

“Even, we sold raw rubber at Tk 350 per kg three to four years ago,” he said.

Since raw rubber is perishable, it can’t be preserved, Hossain said. “So, gardens have to sell raw rubber at a minimum price.”

The cost of production for one kg of rubber in Bangladesh is between $0.63 and $0.84, industry people say.

Global growth is projected to fall from an estimated 3.4 per cent in 2022 to 2.9 per cent in 2023, said the International Monetary Fund in January.