Rubber growers in Bangladesh are increasingly frustrated as rubber latex and sheet rubber prices continue to decline, despite being key import substitutes for the country’s industrial sectors.
According to the Bangladesh Rubber Board, the country produced 67,939 tons of rubber last year — up 58% from 43,000 tons in 2021 — thanks to expanded cultivation areas. However, despite higher output and rising domestic demand, farm-gate prices have dropped sharply, putting smallholders under severe financial pressure.
Falling Prices and Farmer Hardship
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Mohammad Kamal Uddin, former president of the Bangladesh Rubber Garden Owners Association (BRGOA), said rubber processors are taking advantage of growers by citing “higher production costs” while buying latex and sheets at low prices.
He noted:
“There’s no proper storage system for latex or rubber sheets, which are perishable. As a result, processors force growers to sell raw rubber products at minimal prices.”
According to BRGOA data:
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Latex prices have fallen from 60 Tk/kg to 50 Tk/kg over the past six months.
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Sheet rubber prices have dropped from 170 Tk/kg to 140 Tk/kg, far below the 350 Tk/kg recorded three to four years ago.
The price decline is linked not only to local market pressures but also to global economic slowdown and weakened international rubber demand.
Production Challenges in the Hills
Rubber is cultivated on 140,000 hectares, mostly in the Chattogram Hill Tracts, with 1,304 private plantations and 28 state-run estates. The domestic raw rubber market is valued at around Tk 1,050 crore, with Tk 2,500 crore invested by estate owners, providing about 150,000 direct jobs.
Samir Datta Chakma, president of the Indigenous Rubber Garden Owners Association in Khagrachari, said small-scale producers lack access to processing facilities and must sell raw latex at 40–50 Tk/kg, well below market value.
He added that rising labor and input costs, especially in hilly regions, have worsened profitability. Furthermore, rubber yields dropped nearly 50% in the last three months due to low rainfall.
“We lack financial access to expand plantations,” Chakma said.
Industrial Usage and Domestic Demand
Despite grower hardships, demand for rubber products remains strong in Bangladesh. Local rubber accounts for around 80% of the raw material used in footwear manufacturing, according to Arfanul Hoque, head of retail at Bata Bangladesh.
The Meghna Group, a major producer and exporter of rubber-based goods, including bicycle tires through Meghna Innova Rubber Co. Ltd, uses 100% locally produced rubber.
Luthful Bari, Managing Director of Meghna Group, stated:
“We purchase latex at 160 Tk/kg, and prices have remained stable for six months. The stability in raw material costs has helped manufacturers maintain production efficiency.”
Outlook
While Bangladesh’s rubber cultivation continues to expand, low market prices, rising costs, and lack of financial support are major obstacles for smallholders. Unless pricing and value-chain reforms are introduced, the country risks discouraging future investment in a sector with strong domestic and export potential.