Jasim Uddin Haroon

Bangladesh Forest Industries Development Corporation (BFIDC) has earned more than Tk 900 million over the last seven months thanks to expansion of the domestic rubber market.

The state-owned BFIDC, on an average, supplies 500 tonnes of rubber to the country's growing tyre, sandal and other rubber-using industries, officials said.

"We're in a good position as far as earnings are concerned. We've earned more than Tk 900 million over the last seven months," Md Abdul Mannan Ilias, general manager of BFIDC, told the FE Monday.

He said the BFIDC is now in a strong position due to good sales and steady growth of the domestic market.

The corporation, responsible for production and sale of rubber, has 16 large gardens covering more than 32,000 acres of land in Bandarban and Sylhet.

Bangladesh's demand for rubber is around 12,000 tonnes per annum. Local companies including Gazi Tank, Hossain Tyre, Rupsha Sandal and Meghna Group are the largest clients of the corporation.

Gardens in the private sector produce around 5,000 tonnes of rubber each year.

Abdul Mannan said many of their rubber buyers also export to India, as the prices in the domestic market are lower than in the international market.

Sources said the BFIDC sold rubber at Tk 113 a kilogramme in its last auction held two weeks ago while the international market prices ranged between US$ 2.3 and $2.4 a kg.

Rubber trees, also known as carbon trees, produce latex, a fluid that forms rubber, after six years of plantation and the production continues for 30 years.

A single tree produces around 3.0 kg rubber each month.

SM Haroon-ur-Rashid, general secretary of the Bangladesh Rubber Garden Owners Association in the private sector, said their sales also surged in recent times.

"We cannot cope with the rising demand most of the time as many traders export their rubber to the neighbouring country," he told the FE.

Md Ilias, assistant manager of the BFIDC, said it could earn more if the government offered any policy support.

"We've a lot of barren lands in the hilly areas of Bandarban and Khagrachhari, suitable only for rubber plantation," he added.

Abdul Mannan also echoed the same view. He said: "We need government support for this sector as it can create a lot of jobs."

Bangladesh government has been encouraging rubber plantation in the hilly areas since 1980. It has allotted 45,000 acres of lands to the BFIDC and 32,500 acres to private owners.