Techno-economic aspects of the competitive position of natural rubber : with special reference to the natural rubber industry in Sri Lanka

Abstract

This study explores the technological and economic aspects of the competition between natural rubber and the synthetics of the general purpose class. The first part of the thesis reviews the overall competitive position of natural rubber and its future prospects. The effects of the structure of the rubber producing industry (-natural and synthetic), economics of production, characteristics of demand and some aspects of marketing on the short and long term competitive position are analysed. It is concluded that natural rubber can remain competitive in all aspects if, greater co-operation between the natural rubber producers can be achieved to formulate a unified programme of production, research and development and marketing. In view of certain problems peculiar to Sri Lanka, the second part analyses the state of the rubber industry in Sri Lanka in respect of the changes taking place in other natural rubber producing countries, the developments in the synthetic rubber industry and the changing technological requirements of the rubber consuming industries. The commercial, economic and technical viability of certain projects in Sri Lanka and the areas for future research at the Rubber Research Institute of Sri Lanka are briefly explored. Since Sri Lanka is the largest producer of premium grade pale crepe rubber and in view of the declining demand for this rubber, the competitive position of pale crepe is studied in some detail and some recommendations are included to improve its competitive position. In view of the anticipated strong demand for natural rubber in the future, it is recommended that Sri Lanka should plan now to increase rubber production at a faster rate by 1980’s. It is also concluded that it is desirable to produce more special purpose premium grades of natural rubber in Sri Lanka than to produce more complex derivatives in the short term and a long term approach towards producing powdered rubber, liquid and thermoplastic rubber from latex is necessary.