Sri Lanka Equity Forum
Dear Reader,

Registration with the Sri Lanka Equity Forum would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc..

All information contained in this forum is subject to Disclaimer Notice published.


Thank You
Sri Lanka Equity Forum

Discussion Forum for Stock Market Investors in Sri Lanka

සිංහල පරිවර්තනය
Contribute
Submit Post

Latest topics

» Share your Portfolio
by KavinduTM Today at 3:22 pm

» Path to financial freedom - dont skip this
by Junior investor Today at 2:42 pm

» Social Media Marketing in srilanka
by lankaspeaker Today at 2:02 pm

» Meditation and Investing
by ThilinaM Today at 2:00 pm

» THE LANKA HOSPITALS CORPORATION PLC (LHCL.N0000)
by Junior investor Today at 1:16 pm

» DIVIDEND ANNOUNCEMENTS- JAN/MARCH 2020
by liyanaarachchi Today at 12:32 pm

» Investment Advice
by ThilinaM Today at 8:47 am

» Is this true?
by ThilinaM Today at 8:42 am

» Calling Samaritan
by Kipling Today at 6:41 am

» Colombo Stock Exchange to drop older sector categories in favour of GICS
by fireshelter Yesterday at 11:00 pm

» NATION LANKA FINANCE PLC (CSF.N0000)
by lal62 Yesterday at 10:23 pm

» Sri Lanka Economy
by Quibit Yesterday at 10:10 pm

» ACCESS ENGINEERING PLC (AEL.N0000)
by Intrinsicvalue Yesterday at 8:30 pm

» SOFTLOGIC LIFE INSURANCE PLC (AAIC.N0000)
by wisdom79 Yesterday at 5:49 pm

» Perpetual Treasuries to get a most of Treasury Bill-Bond Business of New Government?
by God Father Yesterday at 4:28 pm

» stock portfolio tracking spreadsheet... (google spreadsheet/excel sheet)
by Sajeewa Niranjan Yesterday at 2:43 pm

» HIKKADUWA BEACH RESORT PLC (CITH.N0000)
by snuwan Yesterday at 1:27 pm

» Forum - Reputation System
by ThilinaM Yesterday at 11:41 am

» Share of the year
by Eugine Fernando Yesterday at 8:18 am

» Short Term Targets
by liyanaarachchi Yesterday at 6:15 am

» OVERSEAS REALTY (CEYLON) PLC (OSEA.N000)
by ThilinaM Thu Jan 16, 2020 5:25 pm

» EASTERN MERCHANTS PLC (EMER.N0000)
by KavinduTM Thu Jan 16, 2020 12:35 pm

» VIYATHMAGA – DRIVING CHANGE FOR THE FUTURE
by fireshelter Thu Jan 16, 2020 11:40 am

POPULAR COMPANIES
A

ABANS ELECTRICALS PLC

ACCESS ENGINEERING PLC Hot

ACL CABLES PLC

ACL PLASTICS PLC

ACME PRINTING & PACKAGING PLC

AGSTAR PLC

AITKEN SPENCE HOTEL HOLDINGS PLC

AITKEN SPENCE PLC

ANILANA HOTELS AND PROPERTIES PLC

ARPICO INSURANCE PLC

ASIA ASSET FINANCE PLC

ASIA CAPITAL PLC

B

BAIRAHA FARMS PLC

BALANGODA PLANTATIONS PLC

BIMPUTH FINANCE PLC

BLUE DIAMONDS JEWELLERY WORLDWIDE PLC

B P P L HOLDINGS PLC

BROWNS BEACH HOTELS PLC

BROWNS INVESTMENTS PLC

C

CARGO BOAT DEVELOPMENT COMPANY PLC

CENTRAL INDUSTRIES PLC

CEYLON COLD STORES PLC

CEYLON GRAIN ELEVATORS PLC Hot

CEYLON TEA BROKERS PLC

CEYLON TOBACCO COMPANY PLC

CHEVRON LUBRICANTS LANKA PLC

COLOMBO FORT LAND & BUILDING PLC

COMMERCIAL BANK OF CEYLON PLC

CITRUS LEISURE PLC Hot

COMMERCIAL CREDIT AND FINANCE PLC

D

DANKOTUWA PORCELAIN PLC

DFCC BANK PLC

DIALOG AXIATA PLC

DIALOG FINANCE PLC

DIPPED PRODUCTS PLC

DISTILLERIES COMPANY OF SRI LANKA PLC

DUNAMIS CAPITAL PLC

E

EAST WEST PROPERTIES PLC Hot

EASTERN MERCHANTS PLC

EXPOLANKA HOLDINGS PLC

E-CHANNELLING PLC

F

FIRST CAPITAL HOLDINGS PLC

G

GALADARI HOTELS (LANKA) PLC

GUARDIAN CAPITAL PARTNERS PLC

H

HATTON NATIONAL BANK PLC

HAYLEYS PLC

HAYLEYS FABRIC PLC

HAYLEYS FIBRE PLC Hot

HEMAS HOLDINGS PLC

HIKKADUWA BEACH RESORT PLC

HNB ASSURANCE PLC

HVA FOODS PLC

J

JANASHAKTHI INSURANCE COMPANY PLC

JOHN KEELLS HOLDINGS PLC Hot

JOHN KEELLS HOTELS PLC

L

LANKA ASHOK LEYLAND PLC

LANKA IOC PLC

LANKEM CEYLON PLC

LANKEM DEVELOPMENTS PLC

LAUGFS GAS PLC

LAUGFS POWER LIMITED

LOLC FINANCE PLC

LOLC HOLDINGS PLC

LUCKY LANKA MILK PROCESSING COMPANY PLC

M

MELSTACORP PLC

N

NATIONAL DEVELOPMENT BANK PLC

NATION LANKA FINANCE PLC

NESTLE LANKA PLC

O

ORIENT FINANCE PLC

OVERSEAS REALTY (CEYLON) PLC

P

PANASIAN POWER PLC

PEOPLE'S LEASING & FINANCE PLC

PIRAMAL GLASS CEYLON PLC

PRIME FINANCE PLC

R

RAIGAM WAYAMBA SALTERNS PLC

RENUKA AGRI FOODS PLC

RENUKA CAPITAL PLC

RENUKA HOLDINGS PLC

RICHARD PIERIS AND COMPANY PLC

RICHARD PIERIS EXPORTS PLC Hot

ROYAL CERAMICS PLC

S

SAMPATH BANK PLC

SEYLAN BANK PLC

SIERRA CABLES PLC

SINGHE HOSPITALS PLC Hot

SMB LEASING PLC

SOFTLOGIC HOLDINGS PLC

SOFTLOGIC LIFE INSURANCE PLC

SRI LANKA TELECOM PLC

SWISSTEK (CEYLON) PLC Hot

T

TEEJAY LANKA PLC

TESS AGRO PLC

THREE ACRE FARMS PLC

TOKYO CEMENT COMPANY (LANKA) PLC Hot

U

UNION BANK OF COLOMBO PLC

V

VALLIBEL FINANCE PLC

VALLIBEL ONE PLC Hot

VALLIBEL POWER ERATHNA PLC

W

WASKADUWA BEACH RESORT PLC

Advertise

You are not connected. Please login or register

Sri Lanka Equity Forum » Stock Market Talk » Plantation Sector

Plantation Sector

Go to page : Previous  1, 2, 3, 4, 5, 6, 7, 8  Next

Go down  Message [Page 7 of 8]

121Plantation Sector - Page 7 Empty Re: Plantation Sector on Mon Jan 21, 2019 7:12 pm

ruwan326


Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics
@kalu351 wrote:
@ruwan326 wrote:More countries fault Ceylon Tea
January 20, 2019

Sri Lankan authorities are worried over the concerns raised by a number of other countries pertaining to the residue levels found in Ceylon Tea after Japan in 2017, subjected imports to stringent checks.
Though the re-introduction of glyphosate on the plantations is likely to bring relief during its absence authorities state that even countries like Taiwan and Europe raised issues of maximum residue levels found in teas from Sri Lanka.

Regaining the lost glory of Ceylon Tea has become an issue and authorities have now informed Japan about the re-introduction of the use of glyphosate on the estates.
However, the authorities are still carrying out tests on the residue levels in tea exports resulting in high cost to exporters as the impact of the use of glyphosate would take time.

Tea Board officials told the Business Times that the re-introduction of glyphosate on the plantations was likely to bring hope and some solution to the crisis of residues found in Ceylon Tea shipped to Japan.
Sri Lanka banned the use of glyphosate on agricultural produce three years ago but subsequently in March last year the authorities lifted the ban on tea production.

Meanwhile, authorities note that another key issue pertaining to the testing of sugar in teas has been worked out by the Tea Research Institute (TRI).
They explained that the TRI had established the baseline data to be obtained in a bid to ensure that the authorities could carry out necessary testing of teas produced to detect the sugar added to the product.
The necessary guidelines to carry out such testing would be given out to the industry once the SLTB obtains the required approvals within the next few months.
It was noted that approval needs to be obtained once the boards are appointed that was likely to take place by around next week.

http://www.sundaytimes.lk/190120/business-times/more-countries-fault-ceylon-tea-331138.html
This article is not completely correct and this is utter rubish
The way plantation counters run I doubt too Wink
Hope Q-4 results better than Q-3 Idea

charithaa


Senior Equity Analytic
Senior Equity Analytic
Sri Lanka's publicly traded commercial farms which grow tea, rubber and oil palm, saw prices fall after a new pay deal which industry spokesman said may increase wages by 350 million to 450 million a year on average for each company.

The regional plantation companies announced a collective agreement with trade unions over the weekend which will raise the daily wage of a plantation worker from 500 rupees to 700 rupees. 

Voting shares of 10 of 18 listed plantation companies fell Monday.

Udapussellawa Plantations share closed at 29.40 rupees on Monday, down 2.50 rupees from Friday's close, after trading as low as 28.50 rupees

Talawakelle Tea Estate share fell 6.39 percent or 3.70 rupees to 54.20 rupees.

Hatton Plantation shares fell 60 cents to 7.20 rupees, Bogawantalawa Tea Estates down 70 cents to 12.90 rupees and Balangoda Plantations down 1 rupee to 16.20 rupees at Monday's close.

Plantation companies which currently have on average around 7,000-8,000 workers each, are expected to pay out an extra 350-450 million rupees annually after the pay deal, a spokesperson for the Planters' Association which represents estate managers said.

The twenty plantation companies, employing around 154,000 workers, may have to pay up to 9 billion rupees more in labour costs under the new agreement, the association said. Eighteen are publicly traded.

The latest agreement was signed at 11am Monday.

Unions had initially demanded 1,000 rupees in daily wages. Some unions had blocked roads in plantation areas in protest on Sunday and Monday morning, demanding the 1,000 rupees.

In the previous deal, workers got a basic salary of 500 rupees, an attendance allowance of 60 rupees, a productivity incentive of 140 rupees and a price share supplement of 140 rupees.

The new deal has 700 rupees in basic salary, and 50 rupees price share supplement.

A worker would also get 40 rupees for every extra kilo plucked above the 18 kilogramme 'plucking norm' of the field, up from 28.75 rupees in the earlier deal.

The farms grow a mix of crops including, tea, rubber, oil palm and coconut. Tea is the most labour intensive.

There were some concerns that incentive payments aimed at boosting productivity and attendance had been dropped. 

Children of plantations worker families are leaving the sector to areas including services where labour is scarce or there had been productivity gains and pay is higher.

Sri Lanka's rupee had been depreciated from 149.80 at the end of 2016, to 182 by the end of 2018, which tends to increase the nominal price of commodities helping offset part of the increase in wages.

Sri Lanka's small holder tea farmers, who own farms and not driven by unions, produce the bulk of tea in the island now. Plantations firms are also trying out models involving contracting out fields.

Tea is mostly exported and is subject to global demand and and also the underlying strength of the US dollar to which Sri Lanka's rupee is loosely pegged. 

The rupee however depreciates permanently due to the lack of a consistent monetary policy to support any exchange rate targeting.

123Plantation Sector - Page 7 Empty Re: Plantation Sector on Tue Jan 29, 2019 1:03 pm

charithaa


Senior Equity Analytic
Senior Equity Analytic
Tea production in 2018 had declined by 3.8 million kilos or 1.2% to 303.8 million kilos, with Low Growns suffering the steepest fall whilst CTC production reached a record high. 

According to Forbes and Walker Tea Brokers, Low Growns crop declined by 5.4 million kilos to 191.8 million and high Growns crop remained unchanged at 63.6 million kilos. Medium Growns saw a growth of 1.6 million kilos to finish 2018 at 45.7 million kilos. 

CTC production in 2018 totalled 23.9 million kilos a record surpassing the previous best of 23.3 million kilos achieved in 2012. The 2018 figure reflects a 2.1 million kilo increase over 2017.

124Plantation Sector - Page 7 Empty Re: Plantation Sector on Sun Feb 03, 2019 9:11 pm

charithaa


Senior Equity Analytic
Senior Equity Analytic
the wage deal is not ended yet, as estate workers plans to carry on strike requesting the 700 is not fulfilling their regular needs.

125Plantation Sector - Page 7 Empty Re: Plantation Sector on Sun Feb 03, 2019 9:54 pm

crs


Senior Equity Analytic
Senior Equity Analytic
@charithaa wrote:the wage deal is not ended yet, as estate workers plans to carry on strike requesting the 700 is not fulfilling their regular needs.

වතු කම්කරුවන්ගේ වැටුප් වැඩි කිරීමේ ගැසට් පත්‍රය අත්හිටුවයි

126Plantation Sector - Page 7 Empty Re: Plantation Sector on Sun Feb 03, 2019 10:14 pm

crs

crs
Senior Equity Analytic
Senior Equity Analytic
@crs wrote:
@charithaa wrote:the wage deal is not ended yet, as estate workers plans to carry on strike requesting the 700 is not fulfilling their regular needs.

වතු කම්කරුවන්ගේ වැටුප් වැඩි කිරීමේ ගැසට් පත්‍රය අත්හිටුවයි
තම දෛනික මුලික වැටුප රුපියල් 1000 දක්වා වැඩි කරන ලෙස හෝ  තමන්ට වැඩි කළ රුපියල් 700 මුලික වැටුපට රු140 ප්‍රසාද දිමනාව හෝ එකතු කරන ලෙස බල කරමින් හැටන් කොටගල ප්‍රදේශයේ වතු කම්කරුවන් පිරිසක් අද (03) විරෝධතාවයක් ආරම්භ කර  ඇත.
හැටන් කොටගල ප්‍රදේශයේ වතු කිහිපයකම වතු කම්කරුවන් හැටන් කොටගල ප්‍රදේශිය සභා කාර්යයාලය අසල හැටන් නුවරඑලිය ප්‍රධාන මාර්ගයේ එක් මං තිරුවක් අවහිර කරමින් විරොධතාවයක නියැලුණේය.
විරෝධතාවයේ නියැලි සිටි වතු කම්කරුවන් කියා සිටියේ වතුකරයේ නියෝජනය කර දේශපාඥයින් තමන්ට රු 1000 ක මුලික වැටුපක් ලබාදෙන බවට පොරොන්දු වි රුපියල් 700 ක මුලික වැටුපක් පමණක් ලබා දි එයට අදාල අවබෝධතා ගිවිසුම වතු හාම්පුතුන්ගේ සංගමය සමග අත්සන් කර ඇති බවයි.
රුලියල් 700 මුලික වැටුපට තමන් මෙතෙක් ලබා ගත් රුපියල් 140 ප්‍රසාද දිමනාව අහිමි කර ඇති බවද විරෝධතාවයේ නියැලි සිටි වතු කම්කරුවන් කියා සිටියේය.
අහිමි වු රුපියල් 140 ප්‍රසාද දිමනාව යලි ලබා ගැනිම සඳහා වතු හාම්පුතුන්ගේ සංගමය සමඟ පැවැත්විමට නියිමිත සාකච්ඡාවේදි එම රුපියල් 140 ප්‍රසාද දිමනාව ලබාදිමට රජය කටයුතු කල යුතු බව විරෝධතාවයේ නියැලි සිටි වතු  කම්කරුවන් කියා සිටියේය.
මේ අතර හැටන් මල්ලිඅප්පුව ප්‍රදේශයේද හින්දු පුජකවරයෙක් ඇතුළු වතු කම්කරුවන් පිරිසක් තමන්ට රු 1000 ක මුලික වැටුප තමන්ට අහිමි වු රු 140 ප්‍රසාද දිමනාව ලබාදෙන ලෙස බලකරමින් සත්‍යග්‍රහයක් ආරම්භ කර ඇත.

127Plantation Sector - Page 7 Empty Re: Plantation Sector on Mon Jul 22, 2019 9:31 am

EquityChamp

EquityChamp
Moderator
Moderator
A sector to be looked at closely this week. The index chart becoming more bullish and hence can move deep into the overbought territory in short term.

128Plantation Sector - Page 7 Empty Re: Plantation Sector on Tue Jul 23, 2019 10:49 am

EquityChamp

EquityChamp
Moderator
Moderator
Nice to see some renewed interest in many plantation stocks today. Very Happy

129Plantation Sector - Page 7 Empty Re: Plantation Sector on Tue Jul 23, 2019 11:07 am

sanjulanka


Senior Manager - Equity Analytics
Senior Manager - Equity Analytics
@EquityChamp wrote:Nice to see some renewed interest in many plantation stocks today. Very Happy
ස්තුතියි එසී මම ගත්ත ඔයා කිව්වට පස්සෙ බලන්ගොඩ I love you I love you I love you

130Plantation Sector - Page 7 Empty Re: Plantation Sector on Tue Jul 23, 2019 7:07 pm

SECsux


Senior Equity Analytic
Senior Equity Analytic

131Plantation Sector - Page 7 Empty Re: Plantation Sector on Tue Jul 23, 2019 7:35 pm

EquityChamp

EquityChamp
Moderator
Moderator
Index chart still within neutral stage and we have more companies records 10%+ gains within the day.

BALA, MADU, KOTA, MAL-X, HOPL, BOPL are some of those

Heavy trading also seen in some of these counters.

I think still there is enough team for more activities in the days to come.

132Plantation Sector - Page 7 Empty Re: Plantation Sector on Wed Jul 24, 2019 10:32 am

EquityChamp

EquityChamp
Moderator
Moderator
Running for the second consecutive day. Basketball

133Plantation Sector - Page 7 Empty Re: Plantation Sector on Tue Oct 22, 2019 12:46 pm

Teller

Teller
Moderator
Moderator
Ohhh, Quibit, after long sleep....hahhha😘😘😘😘😘


_________________




Teller said is said..

134Plantation Sector - Page 7 Empty Re: Plantation Sector on Tue Oct 22, 2019 5:06 pm

fireshelter

fireshelter
Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics
Nice to see  our old members participation and well come quibit   Very Happy Very Happy Very Happy Very Happy Very Happy Very Happy affraid affraid affraid What a Face What a Face What a Face

135Plantation Sector - Page 7 Empty Re: Plantation Sector on Tue Oct 22, 2019 6:51 pm

Thushara Ayya

Thushara Ayya
Assistant Vice President - Equity Analytics
Assistant Vice President - Equity Analytics
I think BALA.N0000 is the best among the plantation sector...

136Plantation Sector - Page 7 Empty Re: Plantation Sector on Mon Oct 28, 2019 8:28 pm

God Father


Senior Equity Analytic
Senior Equity Analytic
Plantation Sector - Page 7 Screen12
Plantation Sector - Page 7 Screen13

137Plantation Sector - Page 7 Empty Re: Plantation Sector on Tue Oct 29, 2019 1:26 pm

soileconomy

soileconomy
Vice President - Equity Analytics
Vice President - Equity Analytics
I am very negative on plantation sector since the both leading candidates  have already promised higher  day,s wage for estate sector which is already crippling.

138Plantation Sector - Page 7 Empty Re: Plantation Sector on Tue Oct 29, 2019 1:56 pm

target1


Stock Analytic
Stock Analytic
Best solution is High productivity & fair wage for underpaid workers.

139Plantation Sector - Page 7 Empty Re: Plantation Sector on Tue Oct 29, 2019 4:37 pm

soileconomy

soileconomy
Vice President - Equity Analytics
Vice President - Equity Analytics
@target1 wrote:Best solution is High productivity & fair wage for underpaid workers.
Exactly.That is the exact thing they wont do.Our labour force is far behind in productive wise when we compare our peers India , Kenya , China with regard to TEA industry.

140Plantation Sector - Page 7 Empty Re: Plantation Sector on Fri Dec 06, 2019 11:16 pm

KavinduTM

KavinduTM
Manager - Equity Analytics
Manager - Equity Analytics
With the new gvt i guess this sector gonna run. Any recommended plantations to buy?

141Plantation Sector - Page 7 Empty Re: Plantation Sector on Fri Dec 06, 2019 11:33 pm

PDH


Equity Analytic
Equity Analytic
MASK.............   RS20-30  within 2 month.......

142Plantation Sector - Page 7 Empty Re: Plantation Sector on Sat Dec 07, 2019 10:29 am

Quibit

Quibit
Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics
Impact of declining Rubber production to the economy

Natural rubber production in Sri Lanka is declining at an alarming rate from 155000 Mt produced in 1967 to 82600 Mt last year. Sri Lanka with over 140 years history as the pioneer rubber grower in the world outside South America, was in the fourth place in the world as a NR producer in late nineteen sixties has already fallen down to the 12th position, overtaken by countries entered into growing rubber much later, such as Vietnam, Cambodia and Myanmar. Rubber industry in Cambodia and Myanmar was developed with the expert assistance given by Sri Lankan scientists. With that technical support they were able to increase their rubber production by three to four times within 6 years. During this half a decade, the productivity of rubber lands in Sri Lanka has dropped down to 774 kg/Ha/ Yr while the same in Cambodia has risen from 450 Kg/Ha/Yr to 1090 kg/Ha/ yr.

At present, the contribution from the rubber industry to the total export value of Sri Lanka is only 5% of which, Rs 4.8 billion comes from the export of raw rubber particularly in the form of Latex crepe rubber. Income from rubber finished product export is US $ 864.4 Million (Rs. 152 Billion).



About 70% of the total rubber and latex production of the country is converted to value added products like solid tyres, foam rubber, surgical, examination and industrial gloves and also for making solid and pneumatic tyres and tubes, rubber floorings, toys etc. Last year, 135,000 Mt of raw rubber and latex have been consumed by the local products industry while the total production of raw rubber in the country was only 82600 Mt. Hence, over 76,000 Mt of both dry rubber and latex have been imported to meet the shortfall in 2018. It is best for the economy of Sri Lanka, if this upward trend in rubber consumption for value addition is continued. But, the danger is that already, the rubber products industry will have to depend largely on the raw rubber supplies from other Asian countries. How long can we rely on these supplies?

Hence, the time has now come for the RPCC to consider converting their estate latex used for the manufacture of latex crepe to good grades of RSS at a lesser cost, but selling at almost at the price of best quality latex crepe to meet the shortfall of RSS for local industries.

One of the major reasons for the drop in productivity of all agricultural crops in the country is the escalating labour wages, which makes the weeding cost very high, particularly after the banning of the use of the weedicide Glyphosate citing health reasons which is an unfounded fear created by fear-mongers. As a result, farmlands are not properly weeded now to minimize the absorption, by weeds, of limited quantities of nutrients, added to the soil as fertilizers, at a very high cost. If this ban is not lifted after a proper review of the health hazards, productivity of all crops including paddy will drop further in the future. However, despite this ban, solid Glyphosate is available anywhere in the country at a very high cost. But, during the past couple of years, urea and MOP fertilizers were very scarce all over the country at the correct time to apply.

Asian countries

At present, over 75% of the total rubber production in the world is consumed in Asian countries converting into end products as the rubber industry has now almost totally shifted from the developed Europe and USA to the developing Asia. The world’s largest consumer of NR today is China, consuming over six times the consumption of rubber by the USA. All the reputed makes of US, and European tyres are made under license in China, Thailand and Malaysia and exported all over the world. That is mainly because of their cheap and disciplined labour. There was a good possibility for Sri Lanka too to attract some of those investors here if our politicians and bureaucrats were smart enough. During the past 5 years, political instability was also another negative factor for the foreign investors to invest in projects in Sri Lanka. But, with the convincing election victory of the just elected President with a huge majority at the presidential election held on November 16, there should be a potential boost for investor confidence which will be an inducement for the investors to come to Sri Lanka for new investments.

Thanks to those who invested in rubber projects in Sri Lanka in early eighties, today, the domestic rubber price in Sri Lanka is maintained above the world market price thereby giving some kind of relief for the survival of the local rubber farmers.

The main reason for the drop-in rubber production in the country is the very low paid for raw rubber in the world market. In 2010, there was a shortfall of 240000 Mt of rubber price in the world market and hence the rubber prices rose up to over US $ 5 per Kg. Then all rubber producing countries expanded their rubber plantations to reap the benefit of this attractive high price. As a result, from 2011 onwards there was a surfeit of rubber in the market an excess was created and hence the rubber price started to decline again. Then most of the plantations neglected rubber fields, or totally abandoned them without tapping. Some lands were even converted to other crops. This change of attitude of rubber growers all over the world again reduced rubber production to create a shortfall in the market starting from 2014. But, the world recession started in 2013 continued to have its effect on the price of rubber thereby keeping it at very low level, below the cost of production.

International Rubber Study Group (IRSG) has carefully analyzed the world rubber consumption and supply situation and have predicted that the raw rubber prices should reach an attractive price within the next couple of years. But, by then, will there be rubber in Sri Lanka to sell at that price? It is very unlikely. Not only that, the rubber end products manufacturers of Sri Lanka will have a tough time to purchase rubber from other Asian countries, by competing with industrial giants like China, India and Japan in this region. Then, what will be the plight of over 30,000 skilled and semi-skilled workers employed in our rubber products industry at present?



Unfortunately, the productivity of most of the estates under private management has now fallen down to below that of rubber small holders’ due to non-adoption of Good Agricultural Practices (GAP) recommended by the RRI. It has been reported that in some of the plantations under RPCC, trees have been over tapped in merciless manner and hence young trees in some revenue areas in estates have been slaughter tapped without leaving bark to continue tapping in next 5 to 10 years. In many estates, over 50% of good trees are affected with Tapping Panel dryness (TPD) due to over extraction of latex. RRI introduced rain guards for rubber plantations to minimize crop losses during rainy months. Annually about 72 days of tapping is lost in Kalutara and Ratnapura districts due to rain interference. According to some reports, some RPCC fix rain guards and conduct double tapping far above the RRI recommendation and hence the whole idea of using a rain guard is lost and tapping panel dried trees in such estates have risen to over 50%.

Action must be taken by the Ministry of PI to stop this destruction of rubber plantations in a degrading manner by some RPCC. In some estates under RPC management, the productivity or the yield per hectare (YPH) has dropped down to about 550 kg/Ha/yr, which is far below the average productivity of 829 kg/Ha/yr in the whole country as reported by the rubber development department. Average productivity of rubber in Sri Lanka in 2013 according to RDD was 1300. This sharp drop in YPH from 1300 to 829 within three years is attributed to poor agronomic practices followed by some RPC managed estates all over the country.

In such poorly managed estates, apart from bad taping practices, replanting has not been done and fertilizer applications have not been carried out according to RRI recommendations for many years. From these facts, it is clear that the maximum crop that can be expected in the country for 2019 is even below 83,000 Mt; even though the RDD expect this figure to go up to 95000 Mt. In order to rectify this anomaly, Ministry of PI must get the assistance of the RRI to get the damage done to the plantation by such RPCC assessed and either to take over such badly managed estates to be managed by the state plantation corporation or to hand them over to more responsible different management company.

RRI and the Plantations

Rubber estates under French management in Cambodia use rain guards and conduct systematic stimulation of the clone Pb 314 and carry out tapping only once in 5 days without a single tree affected with tapping panel dryness and obtain a yield of 3200 kg/ha/ yr. If this tapping system is practiced in Sri Lanka too under strict RRI control, problem of rain interference on the yield can be mitigated; thereby increasing the productivity.

It is very sad to note that the relationship between the Rubber Research Institute (RRI) and the Plantations has deteriorated during the past decade due to unknown reasons. But if the Ministry of PI take appropriate measures to strengthen the interactions between the RRI and the plantations to implement recommended agronomic practices while totally eliminating wrong exploitation practices too for improving productivity at least to the national average level, importation of rubber for BOI companies for value addition can be curtailed to some extent.

It should be emphasized here that the technology developed by the RRI particularly in agronomy is quite enough to convert these badly managed estates to reasonably profitable level by improving productivity within two to three years. It is very clear from the role played by the RRISL scientists to convert rubber plantations in Myanmar and Cambodia even to overtake total rubber production in Sri Lanka in less than a decade. When they first commenced consultancy, in Cambodian plantations under UNDP sponsorship, productivity of rubber in Cambodia was only 420 kg/Ha/Yr. But, they were able to increase it to over 1100 kg/Ha/Yr in five to six years and hence, the total rubber production in Cambodia from 97000 Mt in 2014 to 145200 Mt in 2016 and over 200,000 Mt last year; which is nearly three times the total rubber production of Sri Lanka at present.

Cambodians followed the recommendations of Sri Lankans with good faith and were able to treble their rubber production in less than 8 years. Why not plantation companies in Sri Lanka too, plan to follow the RRI recommendations to increase the rubber production to reap the benefits of the IRSG predicted attractive higher price of rubber after 2019. This is the time that people of SAARC countries to be concerned about the environment; because the world weather forecast centre reported last week that in 2100, the temperature of India, Pakistan, Sri Lanka and Bangladesh will rise by 2 degrees Celsius. If no attempts are made now itself by SAARC countries, what will happen to the productivity of all our agricultural crops and the fish population in the ocean?

It is universally accepted that the contribution from NR plantations to the environment is equal to the contribution from the natural forest. NR plantations help to minimize Green House effect by sequestrating 10 Mt of Carbon dioxide gas per hectare per year unlike other agricultural crops. Hence, those RPCC converting low yielding rubber lands into oil palm, as a result of poor management and bad exploitation techniques followed, should be concerned of the ecological effect of the conversion of rubber estates to oil palm in this small island where we only have 18% forest cover. But, to meet the edible oil requirement, oil palm could be planted in other unused lands in the wet zone; but not in lands reserved for rubber. The Ministry of Environment too should focus more on this potential danger and take adequate measures to rectify this problem to protect the country from turning into a desert.

143Plantation Sector - Page 7 Empty PLANTATION SHARES MIGHT MOVE TOMORROW on Thu Dec 19, 2019 1:07 pm

Eugine Fernando


Senior Manager - Equity Analytics
Senior Manager - Equity Analytics
According to Today's Cabinet announcement there are lot of  reliefs have granted to plantation sector. GL

144Plantation Sector - Page 7 Empty Re: Plantation Sector on Thu Dec 19, 2019 9:13 pm

Teller

Teller
Moderator
Moderator
Half of the plantation companies dead now. Its too late for the government support.


_________________




Teller said is said..

145Plantation Sector - Page 7 Empty Re: Plantation Sector on Thu Dec 19, 2019 10:00 pm

kasun_gimhana

kasun_gimhana
Senior Equity Analytic
Senior Equity Analytic
Plantation companies are doing only harvesting. When harvesting over government bailout . government take over replating cost or take over the business and replanting using public taxpayers money and again privatize.  Very Happy

Sponsored content


Back to top  Message [Page 7 of 8]

Go to page : Previous  1, 2, 3, 4, 5, 6, 7, 8  Next

Permissions in this forum:
You cannot reply to topics in this forum