Editorial: Value chain actors propose alternative to outright export ban on raw rubber

A coalition representing rubber farmers, licenced aggregators, traders, nursery operators, processors, exporters, freight forwarders and allied stakeholders across Ghana’s natural rubber value chain have put forward an alternative to government’s 10-year prohibition on raw rubber exports.

Known as the Coalition of Natural Rubber Actors of Ghana (CONRAG), they argue that a blanket ban risks suppressing farm-gate prices, eliminating thousands of rural jobs and ultimately undermining the domestic processing industry it seeks to promote.

The proposal comes amid growing debate over how the country should pursue value addition in the rubber sector without weakening production incentives across the wider value chain.

CONRAG contends that current market conditions do not justify a complete export ban. Hence, it is advocating a framework that preserves both domestic and export market channels while progressively reducing export allocations as verified local processing capacity expands.

“Sustainable industrialisation cannot be achieved through restrictive market interventions alone. It must be inclusive, data-driven and grounded in economic realities.”

At the debate’s heart is a disagreement over Ghana’s actual rubber processing capacity.

While domestic processors have reportedly cited installed annual capacity of approximately 178,000 metric tonnes as justification for the ban, arguing that local factories can absorb the country’s entire output; CONRAG disputes those figures, estimating effective operational capacity at about 86,400 metric tonnes annually – based on a 30-tonne-per-hour processing rate and an eight-hour working day.

As national production is estimated at around 145,000 metric tonnes a year, the coalition believes that a complete prohibition could leave substantial volumes without immediate domestic outlets.

CONRAG also warns that restricting exports could reduce competition among buyers and weaken production incentives. To the coalition, export markets introduce competitive purchasing and prompt cash payments that improve farmer incomes and encourages increased production.

The coalition also raised concerns about delayed payments by processors, contending that exporters have provided an important competitive check within the market.

From the fore-going, therefore, it does appear the ten-year ban on raw rubber exports does not find favour with some stakeholders along the value chain. Hence, the Ministry of Trade and Agribusiness should convene a meeting and deal dispassionately with the issue at hand.

This Paper is confident such an interaction will result in the best solution for the industry.

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