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Saturday, 11 March 2023 07:34

Rubber lots at the Colombo auction go entirely unsold Featured

For the first time in history, the lots at the Colombo rubber auction went entirely unsold this week.

Plantation companies withdrew their quantities at this week’s rubber auction as prices significantly dipped, brokers said.

A total of 202,846 Kgs of rubber were on offer this week, all of which went unquoted.

“Appreciating of the Sri Lankan rupee has created an uncertainty amongst exporters. As a result several buyers kept away from bidding ,whilst some offered lower prices anticipating a further strengthening of the rupee,” Forbes & Walker Commodity Brokers Director Damitha Perera disclosed.

As the natural rubber auction prices have crashed by over 50 percent within six months despite high cost of production, the government plans to impose further strict controls on rubber imports in order to ensure a fair price for local rubber farmers during the key cropping season.

“Rubber auction prices have crashed. They have come down to Rs.450 from Rs.1050 a six months ago,” a leading planter said. .

According to the latest rubber auction the price of top latex crepe stood at Rs.500 after reaching Rs.1,000 in the second quarter of last year backed up by rupee devaluation and rising crude oil prices.

Poor demand due to looming global recession, long holiday season in Europe, Chinese New Year holidays and declining crude oil prices have been cited as reasons for the declining rubber auction prices.

 

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