Sri Lanka mulls compulsory rubber auctions: minister

July 23, 2011 (LBO) – Sri Lanka’s plantations industries ministry is exploring the possibility of introducing a compulsory auction system for rubber like the tea industry, plantations industries minister Mahinda Samarasinghe said. “The government has decided to investigate the possibility of having a compulsory auction system like what we have in the tea industry also in the rubber industry,” he told the annual general meeting of the Colombo Rubber Traders’ Association (CTRA).

“I know it is not very popular among yourselves but it is important to discuss these kinds of new initiatives in a transparent manner so we could investigate putting into place such a system to ensure greater sustainability of the industry and greater distribution of income which comes from the industry.”

Samarasinghe stressed he has not taken a final decision on the auction system and invited industry bodies like the CRTA to respond with their own ideas about the proposal.

He said the ministry was studying systems in other countries which have such auctions for rubber.

“We are investigating their experiences. We are looking at best practices internationally and then will discuss with stakeholders like yourselves,” he told the