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the supply gap, it is also driving up costs and threatening production efficiency.

Rubber is a vital raw material for Bangladesh’s tyre, footwear, automotive parts, and household goods industries. Manufacturers caution that prolonged reliance on imports could undermine production efficiency and slow down industrial growth.

According to BTTC, Bangladesh exported rubber worth over $7.5 million (over Tk 91 crore) as of May 31 in FY25. The figure is extensively higher than the $2.28 million in FY24 and $2.30 million in FY23. India, Sri Lanka, Pakistan and Malaysia are Bangladesh’s primary export market for the item.

Manufacturers say this is hurting the local industry.

“We’re not against exports, but there has to be a balance. The domestic industry should come first,” said Megha Group’s Bari.

He warned that continued export in the face of local scarcity would hurt Bangladesh’s competitiveness, especially in price-sensitive markets.

Moreover, Rahman criticised the absence of a strategic framework for managing rubber exports in an efficient and sustainable manner.

BFIDC Chairman Nasir Uddin Ahmed could not be reached for comment in this regard.

CULTIVATION CHALLENGES

The BTTC report identified several structural problems in rubber cultivations, including lack of modern tools, laboratories, and research for skill development.

It also highlighted insufficient incentives for small and marginal farmers, inadequate tariff protection for domestic producers, a 15 percent value-added tax (VAT) at the primary marketing stage, natural disruptions, absence of high-yield rubber varieties, and limited research on intercropping rubber with suitable crops.

POLICY SUGGESTIONS

The BTTC recommended several measures to strengthen the sector, including raising import duties on raw rubber from 10 percent to 15 percent.

It suggested that to encourage domestic production and industrial development, import duties on rubber sheets should be structured so that products made from these sheets face higher duties than the sheets themselves.

For non-tire rubber products, such as rubber threads, conveyor belts, gaskets, washers, rubber bearings, and other vulcanised items, import duties could be increased if they are produced domestically with high quality.

It also recommended importing high-yield rubber clones through the Bangladesh Rubber Board and distributing them to plantation owners at subsidised rates.

The commission further suggested granting time-bound exemption from the 15 percent VAT on primary rubber products. Additionally, supporting research into intercropping methods to boost land productivity.

The report also noted that most of the country’s rubber demand is currently met through local production, and increasing protective measures could help Bangladesh achieve self-sufficiency in rubber cultivation.

About 60 percent of domestic demand is still met by local production, while 40 percent comes from imports, according to Mohammad Kamal Uddin, who is the president of the Bangladesh Rubber Garden Owners’ Association.