State Minister expects tea and rubber exports to bring in USD 8.5 bn. by 2025

Plantations State Minister Kanaka Herath said that a targeted programme was being implemented to increase the export earnings of the tea and rubber sector to US $ 8.5 billion by the year 2025.

 He said tea exports were expected to reach US $ 5 billion, while rubber exports to US $ 3.5 billion by 2025, bringing the total revenue to US $ 8.5 billion.

 The State Minister made this observation addressing a progress review meeting in the tea and rubber export sectors yesterday.

 Tea exports are expected to generate US $ 1.5 billion this year, while rubber exports are expected to generate US $ 1 billion.

 Aiming to achieve these set goals by 2025, a special programme has already been launched to establish a number of tea and rubber-related industries.

Accordingly the focus is on maximising revenue through value addition rather than exporting as a raw material.  Most of the rubber production in Sri Lanka in particular has been exported as a raw material for a long time. Instead of exporting as a raw material, steps have been taken to promote the rubber based manufacturing processes and export of finished goods. Under this, the Rubber Development Department and the Industrial Development Board have jointly made arrangements to conduct rubber sector industrial training workshops in several districts for persons, who wish to enter the field of rubber-related products.

On average, there were at least 400 rubber-related products in a motor car, most of which could be manufactured locally using local rubber as a raw material, he noted.

State Minister Herath said that at least five more industries were expected to be set up around one industry for industrial promotion.

 “Also, in order to earn more export earnings, local tea and rubber production should be increased. The subsidy for tea and rubber plantations has been increased by about 50 percent,” the State Minister said.

 He however pointed out that it would take several years to reap the benefits of this cultivation process. He pointed out that rubber growers were frustrated due to the lack of a market for rubber during the previous government and that rubber plantations were being converted extensively for other crops. The Minister of State emphasised that the protection of existing plantations as well as the establishment of new plantations was essential to increase rubber production.

 In the short term, the process of increasing production and market diversification has enabled tea production to increase from 124 million to 136 million kg in the last six months.

 In the last few months of this year, tea export earnings have increased from US $ 573 million to US $ 657 million.

 He also predicted that the target of US $ 8.5 billion in export earnings of tea and rubber by 2025 would be achieved through the medium and long term targeted programmes implemented.