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Sri Lanka manufactures lobby to curb rubber farmer trade access

Sept 22, 2011 (LBO) - Sri Lankan rubber products manufacturers are lobbying to double an export cess on raw rubber exports as prices remain high amid strong demand and tight local supply.
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Manufacturers want the export cess, that had been raised to 12 rupees a kilo only earlier this year, doubled to 24 rupees, according to Minister of Industry and Commerce Rishad Bathiudeen.

Analysts say the tax would transfer more profits from rubber farmers - many of whom are small entreprenuers - to manufacturers, while denying cultivator free access to global markets.

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The boom in rubber prices have howevs brought cultivators profits in recent months.

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The state had raised the cess earlier as it wants to give preference to manufacture of value-added rubber products and discourage exports in raw form.


"The cess imposed on rubber exports will serve as a measure to channel more resources to the value added industry by discouraging exports in raw, unprocessed forms," Bathiudeen told parliament which ratified the increase, according to a statement.


The cess on export of raw rubber was increased from eight rupees to 12 rupees a kilo or two percent of the F.
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