Rubber industry suffers from low prices
The rubber industry in Sylhet is facing tough times due to a continuous fall in prices.
As a result of their growing frustration, many plantation owners in the region are now even considering cutting down their rubber trees to make room for other plants.
According to Bangladesh Rubber Development Corporation, natural rubber is made by processing a milky liquid or latex that oozes from cuts made on rubber trees. Growers sometimes call it "white gold".
Rubber cultivation started in Bangladesh during the 1980s. Since then, numerous public and private rubber plantations have been established on about 60,000 acres of land.
There are 18 state-owned rubber plantations in Bangladesh, nine of which are in Chattogram, five in Tangail and Mymensingh and four in Sylhet.
The country's 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 produce rubber is less than half of that for tea, rubber cultivation is increasing day by day.
But for more than a decade now, the demand for domestic rubber has been low and prices have fallen and as a result, many gardeners have become indebted to meet production costs.
Anamul Alam, owner of Baramchal Abdus Sattar Rubber Garden in Kulaura upazila of Moulvibazar, said there was once a number of flourishing rubber plantations in Baramchal.
The area housed about 12 small and big gardens that ranged from 12 acres to 40 acres.
Wholesalers used to come from different parts of the country to buy latex from these plantations. One kilogramme (kg) of rubber can be produced by processing four litres of latex.
At the time, processed rubber was sold at Tk 90 to Tk 150 per kg while latex for Tk 35 to Tk 40 per liter. But as prices came down amidst low demand for locally produced rubber, plantation numbers reduced to just 5, Alam added.
Shakir Ahmed, another rubber grower, said he cut down much of his plantation to make way for Acacia trees in 2016 in order to recover the losses incurred since 2013.
"I had big dreams for the rubber industry but it turned out to be a nightmare," he added.
The rubber industry is suffering from a lack of proper planning, modern farming methods, and interest among new entrepreneurs alongside import dependence and indifference among the authorities concerned.
"If this continues, the industry will fall in crisis," Ahmed said.
The total production cost for one kg of rubber is between Tk 60 to Tk 70, including a 15 per cent value added tax.
Between 2010 and 2012, the price of rubber was Tk 260 to Tk 320 per kg but it eventually fell to about Tk 130 in 2013-14.
Khorshed Ahmed Khan, chairman of Baramchal Union Parishad in Kulaura upazila, said he had two plantations, one of which was sold three years ago while the second counted losses last year due to the ongoing coronavirus pandemic.
"The production cost has tripled but prices have shrivelled, leading to nightmarish losses for farmers, and even the government's rubber plantations nearby has become a loss-making project," he added.
Rubber farmers Abdul Matlib and Iman Uddin kept their garden running for five-long years with the help of subsidies.
"We thought the price might go up again but eventually had to sell off the trees to pay off various debts," Uddin said.
"Besides, it is not possible to pay employees, let alone with 15 percent VAT," he added.
Waliur Rahman, general manager of Bangladesh Rubber Development Corporation in Sylhet, said the industry once provided tremendous revenue.
The price of rubber was previously about Tk 350 in the international market but since it is now around Tk 200, import dependency has increased.
"If taxes could be reduced, farmers would benefit," he added.
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