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Sri Lanka rubber growers hit by plunging prices

Apr 17, 2014 (LBO) - Sri Lanka's rubber growers are being hit by falling world prices with production volumes also dropping due to a drought within the country, an industry association said.
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Deputy Chairman Planters™ Association of Ceylon (PA) and CRTA Vice Chairman S. S. Poholiyadde said in a statement that rubber prices have halved over the past three years.
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Colombo Rubber Traders™ Association (CRTA) Chairman, M S Rahim said that latex crepe reached record highs of 600 rupees a kilo in 2011 but ended 2012 at 385 rupees and remained around 400 rupees in 2013.

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From January 2014 rubber prices have fallen again with latex crepe down around 305 rupees, he said.

In April the average price for latex crepe at Colombo auction was 300 to 230 and ribbed smoked sheets were unquoted, the statement said.

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Commodity Volatility

Global commodity prices including oil plunged after a credit and economic bubble broke in the US and EU in 2009 ending a so-called 'food crisis'.

But in 2010 and 2011 prices picked up again and have been very volatile following excessive money printing programs by the US Federal Reserve know known as 'quantity easing', despite slow economic

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