Rubber processors urge government to regulate raw rubber exports
3rd February 2026
Local rubber processing companies have petitioned the government to urgently regulate the export of raw rubber, warning that unrestricted exports are undermining domestic processing capacity and threatening jobs across the rubber value chain.
In a petition addressed to the Ministries of Food and Agriculture, Trade and Industry, and Finance, the processors said the uncontrolled export of unprocessed rubber has caused severe shortages for local factories. Some processors are operating well below capacity, while others face the risk of closure.
The petitioners emphasized that Ghana’s rubber industry was developed to promote value addition, industrialization, and export diversification. However, the increasing preference for exporting raw rubber, they argue, is undermining these goals and weakening the domestic industrial base.
According to the group, foreign buyers, supported by stronger purchasing power, are distorting the local market by offering higher prices for raw rubber, making it difficult for domestic processors to compete for supplies.
“The foreign exchange losses from raw rubber exports are significant. Between 2025 and 2030, processed rubber is projected to generate about US$950 million, compared to only US$380 million if exported in raw form—a loss of roughly US$570 million,” the petition stated. It added that if local processing firms collapse, Ghana risks an average annual foreign exchange loss of approximately US$190 million.
The processors also questioned whether the foreign exchange earnings from raw rubber exports are fully repatriated in accordance with the Foreign Exchange Act.
They further warned that local factories depend heavily on steady supplies from outgrower farmers and plantations. Continued disruptions, they say, could lead to job losses, reduced tax revenues, and the collapse of investments made under government-led industrialization initiatives.
The group is therefore calling for policy measures that prioritize local processing, including restrictions or a temporary ban on raw rubber exports, alongside incentives to promote value addition within the country.