Rubber industry suffers from low prices
The rubber industry in Sylhet is facing a down economy due to a continuous fall in prices.
Because of their growing frustration, many plantation owners in your community are actually even considering reducing their rubber trees to create place for other plants.
According to Bangladesh Rubber Development Corporation, natural rubber is made by digesting a milky liquid or perhaps latex that oozes from cuts made on rubberized trees. Growers quite often call it "bright white gold".
Rubber cultivation were only available in Bangladesh through the 1980s. Since that time, numerous public and private rubber plantations have already been established on about 60,000 acres of land.
Since then, numerous public and personal rubber plantations have already been established on about 60,000 acres of land. Picture: Mintu Deshwara
There are 18 state-owned rubber plantations in Bangladesh, nine which are in Chattogram, five in Tangail and Mymensingh and four in Sylhet.
The country's gross annual demand for rubber stands at about 30,000 tonnes, around 18,000 to 20,000 tonnes of which is produced locally.
Besides, since the labour cost to create rubber is not even half of that for tea, rubber cultivation is increasing day by day.
But for more than a decade nowadays, the demand for household rubber has been low and rates have fallen and for that reason, many gardeners have grown to be indebted to meet production costs.
Anamul Alam, owner of Baramchal Abdus Sattar Rubber Garden on Kulaura upazila of Moulvibazar, said there is once several flourishing rubber plantations on Baramchal.
The region housed about 12 tiny and big gardens that ranged from 12 acres to 40 acres.
Wholesalers used to result from different parts of the united states to get latex from these plantations. One kilogramme (kg) of rubber could be produced by digesting four litres of latex.
At the time, prepared rubber was sold at Tk 90 to Tk 150 per kg while latex for Tk 35 to Tk 40 per liter. But just as prices came down amidst low demand for locally developed rubber, plantation quantities reduced to just 5, Alam added.
Shakir Ahmed, another rubber grower, said he cut down a lot of his plantation to make way for Acacia trees found in 2016 as a way to recover the losses incurred since 2013.
"I had big dreams for the rubber sector but it ended up being a good nightmare," he added.
The rubber industry is experiencing a lack of proper planning, modern farming strategies, and interest among new entrepreneurs alongside import dependence and indifference among the authorities concerned.
"If this continues, the market will fall found in crisis," Ahmed said.
The full total production cost for just one kg of rubber is between Tk 60 to Tk 70, including a 15 per cent value added tax.
Between 2010 and 2012, the cost of rubber was Tk 260 to Tk 320 per kg nonetheless it eventually fell to about Tk 130 in 2013-14.
Khorshed Ahmed Khan, chairman of Baramchal Union Parishad in Kulaura upazila, explained he previously two plantations, among which was sold three years ago as the second counted losses this past year because of the ongoing coronavirus pandemic.
"The creation cost has tripled but prices have shrivelled, resulting in nightmarish losses for farmers, and sometimes the government's rubber plantations close by has become a loss-making job," he added.
Rubber farmers Abdul Matlib and Iman Uddin kept their back garden running for five-lengthy years by using subsidies.
"We thought the price might go up again but eventually had to sell off the trees to repay various debts," Uddin said.
"Besides, it isn't possible to pay personnel, aside from with 15 percent VAT," he added.
Waliur Rahman, general manager of Bangladesh Rubber Expansion Corporation in Sylhet, said the sector once provided tremendous income.
The cost of rubber once was about Tk 350 in the international market but because it is now around Tk 200, import dependency has increased.
"If taxes could possibly be reduced, farmers would benefit," he added.
