The Colombo Rubber Traders’ Association
Annual Report 2017 / 2018
The Colombo Rubber Traders’ Association Annual Report & Accounts 2017/2018
The History of The Colombo Rubber Traders’ Association
he Rubber Committee of the Ceylon Chamber of Commerce, which had addressed the interests of the Rubber Trade since 1891, identified the need T for a separate forum to promote the interests of the Rubber Industry. A meeting was held on November 27, 1918, at which the Colombo Rubber Traders' Association [CRTA] was formally inaugurated. Attending this meeting were personalities well known in the business circles of Colombo, which included Messrs. Hayley, Durrent, Mackwood, Oldfield, Henry De Mel and John Tarbat. Knighthoods were conferred on the last two named gentlemen.
The first Chairman of the CRTA was Mr. J. Lochore of Carson & Co. Ltd. Initially, the Committee comprised two nominees each of the sellers and buyers. A Brokers’ representative was invited to serve on the Committee at a later date.
Members of the CRTA Committee were exclusively European, till Mr. S.T.L. De Soysa of C. W. Mackie & Co. Ltd. was elected as one of the buyers’ representatives in 1945.
The first rubber auction was held on November 4, 1910, which was prior to the formation of the CRTA. During the war years, the rubber auction was suspended. The first crepe auction to be conducted following the war was held on June 2, 1950. The first sheet auction was held on April 30, 1981, on the termination of the Rubber/Rice pact with the Peoples Republic of China. The first sale of latex by Auction was held on January 24, 1997.
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The Colombo Rubber Traders’ Association Annual Report & Accounts 2017/2018
Mission
“To be the Premier Forum for Rubber in the Country”
Objectives To advance efficient and transparent trade between Sellers, Producers, Buyers, Exporters and Dealers.
To support the expansion and sustainability of the Rubber Industry in Sri Lanka.
To facilitate the development of value addition in the Industry by promoting the manufacture of Rubber based products and to support the Industry efforts in moving up the value chain to achieve greater harmony with the aspirations of consumers.
To promote co-operation amongst all sectors of the Industry and, thereby, to create a synergistic and dynamic Rubber industry.
To stimulate innovation, investment and enhanced productivity throughout the Industry.
To project Sri Lanka Rubber and Rubber based products as leaders in the global markets.
To objectively address major issues, which have a bearing on the Rubber Industry.
To serve as the voice of the Rubber Industry in dialogue with the Public Sector.
To widen the influence of the Rubber Industry by creating and nurturing appropriate links which would be beneficial to it.
To encourage the concept of Corporate Social Responsibility, by example, in promoting sound environmental initiatives, desirable business ethics and rational social practices.
To safeguard the common interest of members by initiating prompt, legitimate and effective action to satisfy their business and professional needs.
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The Colombo Rubber Traders’ Association Annual Report & Accounts 2017/2018
COMMITTEE – 2017/2018
CHAIRMAN Mr. S.Poholiyadde - Kegalle Plantations PLC
VICE CHAIRMAN Mr. Anura Edirisinghe - C.W. Mackie PLC
Buyer Representatives
A.M Rahim & Co. Ltd C.W. Mackie PLC Eastern Merchants PLC Lalan Rubber (Pvt) Ltd Richard Peiris & Company Ltd Shums & Company Ltd
Seller Representatives
Balangoda Plantations PLC Kahawatte Plantations PLC Kegalle Plantations PLC Kelani Valley Plantations PLC Kotagala Plantations PLC Pussellawa Plantations Ltd
BROKER REPRESENTATIVE Forbes and Walker Commodity Brokers (Pvt) Ltd
BY INVITATION The Planters’ Association of Ceylon The Colombo Rubber Buyers’ Association Non - CBA Broker – J. D. and Sons (Pvt) Ltd
SECRETARIAT
The Ceylon Chamber of Commerce
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The Colombo Rubber Traders’ Association Annual Report & Accounts 2017/2018
SUB COMMITTEES - 2017/2018
MEMBERSHIP & DISCIPLINE
Mr. W.T. Ellawala (Convener) Mr. H. de Silva Mr. M.S. Rahim Mr. R.C. Peiris Mr. D Perera Mr. M Dias
WAREHOUSE
Mr. A. Edirisinghe (Convener) Mr. S Eriyagama Mr. K.M.N.P. Bandara Mr. R. Fernando Mr. M Dias Mr. S Junaid
BY LAWS & CONSTITUTION Mr. S. Poholiyadde (Convener) Mr. A. Edirisinghe Mr. L. Obeyesekere Mr. H. de Silva Mr. M.S. Rahim Mr. Ranil Fernando Mr. S Eriyagama Mr. V Ruberu
FREIGHT & SHIPPING
Mr. A. Edirisinghe (Convener) Mr. T Shums Mr. K.M.N.P. Bandara Mr. S Junaid
REGULATORY REFORMS
Mr. W.T. Ellawala (Convener) Mr. M.S. Rahim Mr. R Fernando Mr. S. Poholiyadde Mr. M Dias Mr. D Perera
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The Colombo Rubber Traders’ Association Annual Report & Accounts 2017/2018
REPRESENTATION ON OTHER BODIES
THE CEYLON CHAMBER OF COMMERCE
Mr. S. Poholiyadde was nominated to serve on the Committee of the Ceylon Chamber of Commerce for the year 2017, as the CRTA representative.
SRI LANKA SHIPPERS’ COUNCIL
Mr. Anura Edirisinghe of C.W. Mackie PLC was nominated to represent CRTA in the year 2017/18.
EXPORTERS’ ASSOCIATION OF SRI LANKA
Mr. K Subasinghe of Lalan Rubber (Pvt) Ltd was nominated to serve on the Committee of the Exporters’ Association of Sri Lanka [EASL] for the year 2017-2018, as the CRTA representative.
SRI LANKA SOCIETY FOR RUBBER INDUSTRY
Mr. M Dias was nominated to represent the CRTA on the Board of the Sri Lanka Society for Rubber Industry for the year 2017/2018.
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The Colombo Rubber Traders’ Association Annual Report & Accounts 2017/2018
MEMBERS*
Buyer Members
ALMAR TRADING CO. (PTE) LTD 143/17, Sri Wickrama Mawatha, Colombo 15 Tel : 5340440 Fax : 5344100
ALI BROTHERS (PVT) LTD. 228, Layards Broadway, Colombo 14 Tel : 2330207 – 8 Fax : 2541104
ASSOCIATED MOTORWAYS LTD 185, Union Place, Colombo 2 Tel : 2309309 Fax : 2323781
ASSOCIATED SPECIALTY RUBBER (PVT) LTD Yatideriya Rubber Factory Undungoda. 71200 Tel : 035-2278812 Fax : 035-2278811
A. M. RAHIM & CO. LIMITED 64, W. A. D. Ramanayake Mawatha., Colombo 2 Tel : 2320421/2333625/2445856 Fax : 2448345
AROMA NATURAL RUBBER [PVT] LTD Keraminiya Watta, Mawanella. Tel : 035-2248050 Fax : 035-2246648
CAMSO LOADSTAR (PVT) LTD Regents Court, 218, Minuwangoda Road Ekala, Ja-Ela Tel : 4837659 Fax : 2232828
CEAT- KELANI INTERNATIONAL TYRES Co (PVT) LTD P. O. BOX 53, Nungamugoda, Kelaniya. Tel : 2911305/2911241/2911269 Fax : 4817721/2911453
As at March 31, 2018 6
The Colombo Rubber Traders’ Association Annual Report & Accounts 2017/2018
CEYLON TRADING CO. LTD 36, D. R. Wijewardena Mawatha, Colombo 10 Tel : 2327336/9 /2328904/2325665 Fax : 2449586
C. W. MACKIE PLC 36, D. R. Wijewardena Mawatha, Colombo 10 Tel : 2440229/2423554-63 Fax : 2440228
EASTERN MERCHANTS PLC NO. 240 Torrington Avenue Colombo 07 Tel : 2325736/2328406 Fax : 2448474
FAGA TYRES (PVT) LTD No. 02, Udugalla Estate, Paragasthota, Bandaragama Tel : 077 3873 601/ 034 4298 561/ 0 11 2620 603 Fax : 011 2620 603
GLENROSS RUBBER COMPANY B/2, Elvitigala Flats, Elvitigala Mw., Colombo 8 Tel : 2699607 Fax : 2866765
GLOBAL RUBBER INDUSTRIES (PVT) LTD 28, Joseph’s Lane Colombo 4 Tel : 2598831 Fax : 2551091
HAMEED BROTHERS COLOMBO (PVT) LTD 377, Grandpass Road, Colombo 14 Tel : 2320832/2324447/2345934-5 Fax : 2335617
JAFFERJEE BROTHERS 150, St. Joseph’s Street, P O Box 1180, Grandpass Colombo 14 Tel : 2432051/ 2434041 Fax : 2446085
K. R. V. ENTERPRISES 33, Kelani Ganga Mill Road, COLOMBO 15 Tel : 4936826 Fax : 2433499
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The Colombo Rubber Traders’ Association Annual Report & Accounts 2017/2018
LANKA PRODUCE TRADERS 636/B/2, Malwatta, Malwana Tel : 0112570076/0777488829
LE-FERNE LABORATORIES (PVT) LTD. 255/3, Highlevel Road, Colombo 5 Tel : 4203328/4203329 Fax : 2813862
LALAN RUBBER (PVT) LTD 95 B, Zone A Export Procesing Zone Biyagama, Malwana Tel : 4311200/4311241 Fax : 2820579/2311222
LAK LATEX CENTRIFUGE (PVT) LTD Baduraliya Tel : 0718527717 / 0773118746 Fax : 0342244026
MALWATTE TRADERS 635/A2, Malwatte, Malwana Tel : 2439451
MICROCELLS LTD Koskanatte Road, Mampe, Piliyandala Tel : 2708908 Fax : 2708917
OREX TRADING COMPANY No. 107, Biyagama Road, Kelaniya Tel : 2911566/2911236 Fax : 2911566
P. R. & SONS No. 17, Dawalasinghharama Mawatha Colombo 15 Tel : 2546168
RICHARD PEIRIS & COMPANY PLC 310, High Level Road Nawinna, Maharagama Tel : 4304028/2852644 Fax : 2856787
SAMSON COMPOUNDS (PVT) LTD D Samson Rajapakse Mw, Bataduwa, Galle
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The Colombo Rubber Traders’ Association Annual Report & Accounts 2017/2018
SHUMS & CO LTD 33A, Queens Road, Colombo 3 Tel : 2580027/2580170/2588470 Fax : 2503619/2503440
Seller Members
AGALAWATTE PLANTATIONS PLC 10, Gnanartha Pradeepa Mawatha, Colombo 8 Tel : 2679598-9/2678390 Fax : 2694833
BALANGODA PLANTATIONS PLC P.O.Box No. 6, Palmgarden Ratnapura Tel: : 045 2231445/7 Fax : 045 2223598
ELLAWALA RUBBER (PVT) LTD 14, Carlwil Place, Colombo 03. Tel : 2575756 Fax : 2573098
ELPITIYA PLANTATIONS PLC 73/3, Ward Place, Colombo 07 Tel : 5335572-74 Fax : 5335573
HAPUGASTENNE PLANTATIONS PLC 186, Vauxhall Street Colombo 2 Tel : 045 2222717/ 2222319 Fax : 045 2222717
HORANA PLANTATIONS PLC 7/1, Gower St, Colombo 05 Tel : 5400700 - 87 Fax : 5400730
KAHAWATTE PLANTATIONS PLC 52, Maligawatte Road, Colombo 10 Tel : 4723937 Fax : 4722495
KEGALLE PLANTATIONS PLC 310, High Level Road, Nawinna, Maharagama. Tel : 4310823 / 4310799 Fax : 4310799
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The Colombo Rubber Traders’ Association Annual Report & Accounts 2017/2018
KELANI VALLEY PLANTATIONS PLC 400, Deans Road, Colombo 10 Tel : 2686274-5/2627700 Fax : 2694216
KOTAGALA PLANTATIONS PLC 53 1/1, Sir Baron Jayathileke Mawatha Colombo 1 Tel : 2381508-10 Fax : 2381513
MALWATTE VALLEY PLANTATIONS PLC 280, Dam Street, Colombo 12 Tel: 5388800 Fax: 2543937
NAMUNUKULA PLANTATIONS PLC 310, High Level Road Nawinna, Maharagama. Tel : 4310801, 4310500 Fax : 4306726
PUSSELLAWA PLANTATIONS LTD. No. 168, Negambo Road Peliyagoda Tel : 7990000 / 7990007 Fax : 7990063
WATAWALA PLANTATIONS PLC No. 60, Dharmapala Mawatha, Colombo 03 Tel :4702400 Fax :4716365
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The Colombo Rubber Traders’ Association Annual Report & Accounts 2017/2018
Broker Members
ASIA SIYAKA COMMODITIES PLC 320, T.B Jayah Mw, Colombo 10 Tel : 4939438 Fax : 2678145
COMMODITY CONSULARS (PVT) LTD 49/4, Sir Chiththampalam A Gardiner Mawatha, Colombo 2 Tel : 0777 700 999 Fax : 5665429
FORBES & WALKER COMMODITY BROKERS (PVT) LTD 46/38, Navam Mawatha, Colombo 2 Tel : 2433720/43 Fax : 2437147
H. W. J. DIAS & BROS (PVT) LTD. 199/96, Obeysekera Crescent, Rajagiriya Road, Rajagiriya Tel : 2 876 372 / 777 395 487
J. D. & SONS (PRIVATE) LTD. 64, W.A.D Ramanayake Mw, Colombo 02 Tel : 2331739/ 2331749 Fax :2331729
JOHN KEELLS PLC 186, Vauxhall Street, Colombo 2. Tel : 2306551 Fax : 2326121
LANKA COMMODITY BROKERS LTD NO.780, Maradana Road, Colombo -10 Tel : 5377080-3 Fax : 5377090
M. Z. M. MOHIDEEN & SONS 16/4-1/1, Waidya Road, Dehiwela Tel : 0777-316415 & 0777-359259 Fax : 2719802
RANSRI ENTERPRISES (PVT) LTD. 199/96, Obeyesekere Cresent, Rajagiriya Road, Rajagiriya. Tel : 2 876 372 / 777 395 487
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The Colombo Rubber Traders’ Association Annual Report & Accounts 2017/2018
AN OVERVIEW OF THE INDUSTRY
NATURAL RUBBER PRODUCTION
Rubber production grew by 5.1% to 83.1 million Kg in 2017, from 79.1 million Kg recorded in 2016. This growth in natural Rubber production was achieved amidst unfavourable weather conditions, particularly during the first half of the year, which resulted in severe floods in traditional Rubber growing areas. Among the major categories of rubber produced, sheet Rubber production, the largest component of total rubber production, increased by 4.4% to 41.5 million Kg, while Crepe Rubber production decreased considerably by 23.3% to 11.5 million Kg in 2017. Meanwhile, the production of unspecified category of Rubber recorded a significant increase of 23.9% to 30.1 million Kg during 2017, when compared to the previous year.
Source: Central Bank of Sri Lanka
TABLE 1
SRI LANKAN RUBBER PRODUCTION 2013 - 2017 (Mn. Kgs.)
% SHARE OF CATEGORY TOTAL 2013 2014 2015 2016 2017 TOTAL 2017 Sheet Rubber 62.8 48.5 44.4 39.7 41.5 50 Crepe Rubber 20.2 15.3 11.1 15.1 11.5 14 TSR 9.6 7.6 7.6 3.9 1.2 1 Others 37.8 27.2 25.5 20.4 28.9 35 Total 130.4 98.6 88.6 79.1 83.1 100
Source: Rubber Development Department
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The Colombo Rubber Traders’ Association Annual Report & Accounts 2017/2018
TABLE 2
NATURAL RUBBER PRODUCTION 2011-2017 (Mn Kg)
Sheet Sole Scrap Latex Latex & Year TSR Total Rubber Crepe Crepe Crepe Other
2011 60.7 3.4 1.3 59.9 7.9 24.9 158.2 2012 59.2 1.9 1.3 36.5 8.7 44.4 152 2013 62.8 2.4 2.4 15.4 9.6 37.9 130.4 2014 48.5 2.4 1.0 11.8 7.6 27.2 98.6 2015 44.4 1.9 0.9 8.3 7.6 25.5 88.6 2016 39.7 1.6 0.8 12.6 3.9 20.5 79.1 2017 41.5 1.5 0.8 9.2 1.2 28.9 83.1
Source: Rubber Development Department
DOMESTIC CONSUMPTION
TABLE 3
DOMESTIC CONSUMPTION OF NATURAL RUBBER 2013-2017 (IN THOUSAND TONS)
Category Total 2013 2014 2015 2016 2017 Dry Rubber 65.1 66.1 71.3 78.1 71 Latex 53.3 49.9 56.1 63.9 57 Total 118.4 116 127.4 142 128
Source: Rubber Development Department
Domestic rubber consumption declined by 9.2% in 2017 to 128 million Kg.
CULTIVATION
208.8 hectares were newly planted in traditional rubber growing areas and 464.4 hectares were newly planted in non-traditional rubber growing areas with the aim of expanding the area under rubber cultivation. Source: Central Bank of Sri Lanka
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The Colombo Rubber Traders’ Association Annual Report & Accounts 2017/2018
EXPORTS
Natural rubber exports increased by 6.6 % to 17.2 million kg in 2017 compared to the previous year. Source: Central Bank of Sri Lanka
TABLE 4
EXPORTS OF RUBBER – 2013 - 2017 (IN THOUSAND TONS)
Sheet Sole Scrap Latex Latex & Year TSR Total Rubber Crepe Crepe Crepe Other 2013 4.8 2 0.02 13.2 2.2 1.4 23.62 2014 2 2.3 0.02 9.9 0.9 1.3 16.42 2015 0.9 1.8 0.012 6.9 0.4 0.3 10.312 2016 1.6 1.5 0 10.5 1.1 1.4 16.1 2017 2.9 1.4 0 7.6 0.9 4.4 17.2
Source: Rubber Development Department
The Export Prices of Rubber in 2013- 2017 are shown in Table 5.
TABLE 5
RUBBER EXPORTS VALUE 2013-2017 (Rs. / million )
YEAR RSS CREPE OTHER TOTAL
2013 1,743 6,095 1,356 9,194 2014 587 4,553 776 5,916 2015 217 3,064 268 3,548 2016 387 3,743 628 4,758 2017 (a) 931 3,430 1,559 5,920 Source: Central Bank of Sri Lanka
(a) Provisional
Total Export Value recorded an overall increase of Rs. 1162 Million in 2017 compared with 2016. During this period, the export value of RSS increased by Rs.544 million.
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The Colombo Rubber Traders’ Association Annual Report & Accounts 2017/2018
TABLE 6
EXPORTS OF NATURAL RUBBER FROM SRI LANKA FOR 2017 - (Kg)
2017
CREPE RUBBER Sole Crepe Vietnam 1,406,144 South Africa 392,350 Hong Kong - Bangladesh 2,791 USA 8,410 Other 368,338 Total 2,178,033 Latex Crepe Malaysia 1,009,000 Japan 1,606,940 Italy 833,000 Germany 942,251 Other 3,242,103 Total Scrap Crepe Malaysia 0 Other 0 Total 0 SHEET RUBBER RSS India 761,280 Pakistan 1,882,685 Germany 161,280 USA 0 Malaysia 16,675 Other 118,510 Total 2,940,430 LATEX & OTHER 4,351,687 TSR 898,791 Total 5,250,478 GRAND TOTAL 18,002,235
Source: Rubber Development Department
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The Colombo Rubber Traders’ Association Annual Report & Accounts 2017/2018
China, the largest rubber consuming economy in the world, increased its import volumes to replenish its gradually depleting buffer stocks. This indicates that the demand for domestic rubber is likely to increase in the medium term, which is an encouraging development for the local rubber manufacturing industry. However, to harness the full potential of the rubber sector, domestic backward and forward linkages need to be developed to promote higher domestic value addition and reduce the dependence on foreign demand.
Source: Central Bank of Sri Lanka
NATURAL RUBBER PRICES
The Colombo Market Prices of Rubber in 2013- 2017 are shown in Table 7.
TABLE 7
COLOMBO MARKET PRICES 2013-2017
(Rs./Kgs)
RSS LATEX CREPE SCRAP YEAR NO. 1 NO.2 IX NO. 1 CREPE NO. 1 X BR
2013 376.90 369.21 397.28 389.69 309.23 2014 286.05 280.14 310.00 302.20 213.27 2015 248.17 242.92 301.53 296.30 187.80 2016 239.28 229.76 262.31 258.81 179.988 2017 ( a) 336.72 329.82 351.71 347.97 269.55
(a) Provisional Source: Central Bank of Sri Lanka
With the increase in global rubber prices towards the end of 2017, the domestic market also witnessed an increasing trend in prices. The favourable global demand, particularly for natural rubber, improved local prices of latex crepe and RSS Number 1 (RSS1). The average price of RSS1 registered a significant increase of 40.7 % to record Rs. 336.72 per Kg, whilst the average price of latex crepe also witnessed an increase of 34.1 %, attracting Rs. 351.71 per Kg at the Colombo Rubber Auction during 2017.
Source: Central Bank of Sri Lanka
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The Colombo Rubber Traders’ Association Annual Report & Accounts 2017/2018
TABLE 8
STATISTICAL OVERVIEW OF THE RUBBER INDUSTRY 2015- 2017
ITEM UNIT 2015 2016 (a) 2017(b) Production Kg mn 88.6 79.1 83.1 Total extent Hectares ‘000 137 136 137 Area under tapping Hectares ‘000 108 93 103 Average Yield kg./ hectare 819 851 809 Cost of Production (g) Rs./kg. 170 180 195
Colombo Auction (RSS1) Rs./kg. 248.17 239.28 336.72 Export (fob) Rs./kg. 342.03 294.33 343.56 Replanting (g) Hectares 621 591 1841 New planting (g) Hectares 769 592 701
Source: Central Bank of Sri Lanka
(a) Revised (b) Provisional (g) Extents Covered by Cultivation assistance schemes of the Rubber Development Department
The average yield for rubber was 809 Kg per hectare in 2017, which was a marginal increase of 1.1% from the average yield recorded in 2016. The low yield in Rubber was primarily driven by the decline in the number of tapping days, particularly in the smallholder sector, where key producers of Ribbed Smoked Sheet (RSS) slowed down tapping operations in response to adverse weather conditions.
The cost of production of rubber has been increasing over the years, and in 2017 it increased by 8.3% to Rs. 195.00 per Kg, from Rs. 180.00 per Kg that was recorded in 2016, making Rubber production less attractive for the smallholder sector.
GOVERNMENT INTERVENTION IN RUBBER CULTIVATION
The Rubber Development Department (RDD) and the Rubber Research Institute (RRI) steered the development strategy for the rubber sector to improve productivity and explore new ventures to increase the local production of rubber and mitigate the effect of volatile prices for rubber in the global market.
With a strategy to increase annual rubber production to 200,000 metric tons by 2030 from the current level of 83,100 metric tons, the Rubber Development Department (RDD) and the Rubber Research Institute (RRI) continued their development activities. The 2017 annual action plan for achieving the above targets included productivity improvements and expansion of rubber cultivation to non-traditional areas as the main strategies.
Meanwhile, coordination and progress reviewing of activities were carried out under the rubber cultivation programme in the Ampara district through the STaRR project. The master plan for the rubber industry was launched in May 2017 and steps have been taken to set up a Rubber 17
The Colombo Rubber Traders’ Association Annual Report & Accounts 2017/2018
Development Secretariat in collaboration with the public and private sectors to implement this plan.
A committee was appointed to regularise extension services of the rubber sector, which expedited the process of restructuring RDD and commenced a research and extension dialogue between the RDD and the RRI. Measures were taken by the RRI to promote value addition of raw rubber production aimed at developing high-end rubber based products, promote methodologies such as low intensity harvesting to reduce the increasing cost of production and promote replanting high yielding clones in rubber lands.
In addition, research activities were carried out in developing crepe rubber based toys, developing latex based compound for inner lining of tanks, developing vulcanising systems for latex based products and testing of organic and inorganic mulching for weed control, while carrying out their regular research activities. The rubber production sector suffers from lack of competitiveness, with low productivity levels resulting from poor adoption of required agro- management practices.
Particularly in the smallholder sector, professional plantation management systems with a cluster approach would be beneficial to adopt proper agro-management practices to increase overall productivity of smallholdings. Further, the introduction of productivity based incentive systems for plantation management is required to motivate rubber growers to increase productivity.
Source: Central Bank of Sri Lanka
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The Colombo Rubber Traders’ Association Annual Report & Accounts 2017/2018
OUTLOOK & MARKET TRENDS
OUTLOOK
Global production of natural rubber was up in 2017, but global consumption of NR dropped during the same period.
According to a recent release from the Association of Natural Rubber Producing Countries, NR production rose 6.8 percent last year to 13.3 million metric tons, compared to the 12.4 millions tons produced in 2016. ANRPC noted that almost 90 percent of the world supply was produced by its member states.
Global NR consumption, meanwhile, rose by a mere 1.4 percent to 12.9 million tons during 2017, according to ANRPC.
In December, the industry saw signs of recovery in rubber prices, but the improvement was linked to higher crude oil prices and a reduction in supply by three major NR producers. In an effort to address low NR prices, Thailand, Malaysia and Indonesia, members of the International Tripartite Council, agreed on the Nov. 29th to cut NR exports by 350,000 tons between Dec. 22 and March 31. Other measures included providing loans to growers at subsidized rates to encourage replanting and increase productivity.
http://www.rubbernews.com
MARKET TRENDS
AVERAGE RATE OF 1X & RSS 1 PER AUCTION 2017
480.00 470.00 460.00 450.00 440.00 430.00 420.00 410.00 400.00 390.00 380.00 1X 370.00 360.00 350.00 RSS 1 340.00 330.00 320.00 310.00 300.00 290.00 280.00
270.00
1/1/17 9/1/17 2/2/17 6/3/17 7/4/17 1/5/17 9/5/17 2/6/17 4/7/17 5/8/17 6/9/17
17/1/17 25/1/17 10/2/17 18/2/17 26/2/17 14/3/17 22/3/17 30/3/17 15/4/17 23/4/17 17/5/17 25/5/17 10/6/17 18/6/17 26/6/17 12/7/17 20/7/17 28/7/17 13/8/17 21/8/17 29/8/17 14/9/17 22/9/17 30/9/17 8/10/17 1/11/17 9/11/17 3/12/17
24/10/17 17/11/17 25/11/17 11/12/17 19/12/17 27/12/17 16/10/17
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The Colombo Rubber Traders’ Association Annual Report & Accounts 2017/2018
ACTIVITIES OF THE ASSOCIATION
ANNUAL GENERAL MEETING – 2017/2018
The 98th Annual General Meeting of the Colombo Rubber Traders’ Association was held on the 28th of July 2017 at the Renuka City Hotel, Colombo. Mr. Lakna Paranavithana, Consultant, Ministry of Plantation industries was the Chief Guest and delivered the Keynote Address.
Government policy on acquiring rubber lands for development projects The seller representatives were critical on the government policy on acquiring rubber lands for development projects which are owned by RPCs. This issue was taken up with Hon Minister of Plantation Industries, Mr. R Paskaralingam, Advisor to the Ministry of National Policy Planning and Economic Affairs and SLSRI (as they are the private sector representation for the implementation of the Rubber Master Plan).
Insurance Policy of Brokers’ Warehouses Buyers concerns were raised in terms of the Conditions of Sale for Rubber by Auction No.4. (a) (vii), which is quoted below, and attention was drawn to the broker’s responsibility to insure goods in their possession in case of fire, burglary, wind, flood, and natural disaster up to the stipulated 24th working day of free storage and beyond, until the time of collection by the buyer.
For ease of reference below is Bye–Law No. 4 (a) (vii) of Condition of Sale for Rubber by Auction, which reads:
Quote
4. (a) (vii) If the Buyers fails to take delivery within 24 working days from prompt date, the rubber shall be absolutely at buyer’s risk and the Seller, his Agent or Broker shall charge storage rent at the rate fixed by the Committee from time to time from the 25th working day after prompt date until and including the date of delivery, provided always that any payment of rent by the Buyer shall not render the Seller, his Agent or Broker liable for any loss or damage to the rubber from whatever cause arising other than the Seller’s his Agent’s or Broker’s own negligence or willful act. Unquote
It was unanimously decided that no amendment to rule no. 4 (a) (vii) ‘Storage Rent’ was necessary.
Rubber Sample Room
The Rubber Sample room has been relocated to No 13 1/1, Hudson Road, Colombo 3, with an extent of approximately 650sq. ft. The monthly rental has been negotiated for Rs.55,000 per month for 2017 after which a 10% increase per annum will be effected for every year for the next four years. A Tripartite lease agreement has been signed between the CRTA, the CCC and the land lord.
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The Colombo Rubber Traders’ Association Annual Report & Accounts 2017/2018
IMPORTATION OF 1000MTS OF NATURAL RUBBER
CRTA Committee was critical on decisions made by the Cabinet Committee for the importation of 1000mts of Natural Rubber under a special duty concession for the rubber manufacturers who do not enjoy BOI privileges through the State Trading Corporation.
This was addressed with the relevant Government authorities.
RUBBER WAREHOUSING CHARGES
The Colombo Brokers’ Association sought the intervention of the CRTA for an increase in the storage rates charged for accommodating Sellers’ rubber in their warehouses.
The proposal was granted by the PA for an increase from the rate of Rs.1.50 per kg to Rs.2.00 per kg, with effect from July 1, 2017.
The Colombo Brokers’ Association again reported that the PA, having deliberated the subject of warehouse rental, has decided in consultation with the RPCs to grant an increase of -/25 cents per Kg over the existing rate of the current Rs.2/- per Kg with effect from 1st January 2018.
BUDGET PROPOSAL
CRTA submitted a budget proposal to EASL and EDB based on the following issues.
• Forward integration • Rubber timber value addition • Regulatory body for minimum price • Increased subsidy for Rubber Replanting • Effective payment of overdue rubber subsidies and Effective Usage of Rubber CESS
SEMINAR ON “SUSTAINABILITY OF RUBBER INDUSTRY”
CRTA, conducted a seminar under the theme “Sustainability of Rubber Industry” on Thursday November 2, 2017 in the Ground Floor Auditorium of the Ceylon Chamber of Commerce.
The seminar was conducted with the participation of six prominent industry experts, comprising of, The Chairman, Mr. Sunil Poholiyadde, Mr. Anura Edirisinghe, Mr. Damitha Perera, Mr. Januka Karunasena, (CEO, Richard Pieris Natural Foams Ltd), Mr. R Jansz and Mr. Ranil Fernando. Accordingly, the participants were given a comprehensive understanding on the expectations of a Seller, services offered by Rubber Brokers, Rubber Grading, exporters’ role in the rubber industry and Quality aspects of Natural Rubber – Trends towards certified products of Natural Rubber etc.
62 participants attended the programme.
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The Colombo Rubber Traders’ Association Annual Report & Accounts 2017/2018
THE CEYLON CHAMBER OF COMMERCE
The 178th Anniversary of the Ceylon Chamber of Commerce was held on 29, June, 2017 at the Cinnamon Grand Hotel Colombo.
Mr. R. Theagarajah was elected as Chairperson of the CCC and Dr. Hans Wijesuriya was appointed as Vice Chairperson and Mr. V Govindasamy as Deputy Vice Chairperson.
THE COLOMBO RUBBER BUYERS’ ASSOCIATION
Mr. A. Edirisinghe served as the representative of the CRBA on the CRTA Committee for the year 2017-2018.
THE COLOMBO BROKERS’ ASSOCIATION
Mr. Damitha Perera of Forbes and Walker Commodity Brokers (Pvt) Ltd served as the nominee of the CBA on the CRTA Committee during the year under review.
THE PLANTERS’ ASSOCIATION OF CEYLON
Mr. S Ganeshan represented the PA on the CRTA Committee during the year 2017-2018(from April to July 2017). With the retirement of Mr. S Ganeshan, Mr. Y de Silva represented the PA on the CRTA Committee during the year under review.
The 163rd Annual General Meeting of the Planters’ Association of Ceylon was held on September 22, 2017.
The Chief Guest at the event was, Dr. Rohan Pethiyagoda, The Chairman, Sri Lanka Tea Board. Mr. Sunil Poholiyadde was Re-appointed as Chairman while the Deputy Chairman was Mr V. Ruberu for the ensuing year.
EXPORTERS’ ASSOCIATION OF SRI LANKA
The Exporters' Association of Sri Lanka which is affiliated to the Ceylon Chamber of Commerce held its 20th AGM on 28th July, 2017 at Ramada Hotel.
Mr. Harin De Silva of Eastern Merchants PLC was elected as the Chairman for EASL whilst Mr. Mr. Chrisso de Mel was elected as 1st Vice Chairman.
SRI LANKA SHIPPERS’ COUNCIL
Mr. Anura Edirisinghe of C.W Mackie PLC was nominated to serve on the Committee of the Sri Lanka Shippers’ Council, as the representative of the CRTA, for the year 2017-2018.
Sri Lanka Shippers’ Council held its 47th Annual General Meeting on the 29 July 2017 at the Board Room of the Ceylon Chamber of Commerce. Mr. Chrisso De Mel was elected as the Chairman for the year 2017/2018.
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The Colombo Rubber Traders’ Association Annual Report & Accounts 2017/2018
SRI LANKA SOCIETY FOR RUBBER INDUSTRY
Mr. W.T Ellawala was re-elected as the Chairman of SLSRI for the year 2017/2018 and Mr. M. Dias was nominated to represent the CRTA on the Board of the Sri Lanka Society for Rubber Industry for the year 2017/2018.
Mr. W.T Ellawala was appointed as a member of the Ministerial Sub Committee on Rubber by the Hon Minister of Plantation Industries.
Sri Lanka Rubber Industry Development Master Plan (2016 - 2026)
Rubber Master Plan – The Master Plan has been worked out for a 10 year period from 2016-2026 as a national agenda for the rubber industry’s development and has been prepared by the Plantation Ministry together with the Industries and Commerce Ministry and the Sri Lanka Society of Rubber Industry.
The Cabinet approval has been granted Rs.100 million for the implementation of the Rubber industry master plan. 25 projects have been identified under SL Rubber Industry Master Plan 2016-2026 and SLSRI would seek affiliated Associations/ stakeholder’s recommendations on prioritizing projects for funding, technical assistance and implementation.
Cabinet approval has been granted to set up a Rubber Secretariat in collaboration with the private and public sectors for the purpose of implementation of the Master Plan, and to recruit staff with essential expertise and to appoint a Ministry level Steering Committee. Accordingly, action is being taken to set up the office and to recruit the relevant staff.
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The Colombo Rubber Traders’ Association Annual Report & Accounts 2017/2018
APPROVED WAREHOUSES OF BROKER / SELLER
REGISTERED NO LOCATION DETAILS
ASIA SIYAKA PRODUCE BROKERS (PVT) LTD
1 No. 349 B , Dippitigoda Road, Hunupitiya, Wattala
LANKA COMMODITY BROKERS LIMITED
2 No.01 Muthurajawela Road, Muthurajawela, Hendala, Wattala
FORBES & WALKER WAREHOUSING (PVT) LTD
3 No.805/4C, Bangalawatta Road, Building-D Mabola, Wattala
4 No. 235/2, Hekitta Road, Wattala
JOHN KEELLS WAREHOUSING (PVT) LTD
No.455/1, Dippitigoda Road,Hunupitiya,Wattala 5
JD & SONS (PVT) LTD
6 Main warehouse store no: 1,# 106 Weliamuna Road, Hendala, Wattala
7 Main Warehouse, # 109, Weliamuna Road, Hendala, Wattala
8 455/1 & 349 A, B, & C, Dippitigoda Road, Hunupitiya, Wattala
9 Main Warehouse Store no:2, # 106 weliamuna road,Hendala, wattala
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The Colombo Rubber Traders’ Association Annual Report & Accounts 2017/2018
THE CHAMBER BOARD OF ARBITRATORS AND SURVEYORS - 2017
The Following were approved as Arbitrators for the year 2017 – Rubber
Mr. M. S. Rahim A. M. Rahim & Co. Ltd Mr. J. B. L. De Silva Eastern Merchants Ltd Mr. S. S. Poholiyedde Kegalle Plantations Ltd Mr. Richard Jansz J. D. & Sons (Pvt) Ltd Mr. U. Bandaranayake Forbes & Walker Ltd. Mr. R. C. Peiris Kotagala Plantations Ltd
The Following were approved as Surveyors for the year 2017 – Rubber
Mr. K D P Perera Forbes and Walker Commodity Brokers (Pvt) Ltd.
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The Colombo Rubber Traders’ Association Annual Report & Accounts 2017/2018
BALLOT FOR THE ELECTION OF THE COMMITTEE – 2018/2019
On the results of the ballot, the following were elected to the Committee of the CRTA for the year 2018-2019:
Buyer Representatives
C.W Mackie PLC Eastern Merchants PLC A .M. Rahim & Co Limited Almar Trading Co. (Pvt) Ltd Lalan Rubber (Pvt) Ltd Richard Peiris & Co. Limited
Seller Representatives
Kotagala Plantations PLC Pussellawa Plantations Ltd Balangoda Plantations PLC Kahawatte Plantations PLC Kelani Valley Plantations PLC Agalawatte Plantations LTD
BY ORDER OF THE COMMITTEE
SGD.
FOR SECRETARY
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