Liberia Bans Raw Rubber Exports to Address Processor Shortfalls

Liberia's six rubber processors require 36,600 metric tons of raw rubber each month yet receive only 14,000 tons, leaving a 22,600-ton shortfall, according to data the Ministry of Agriculture presented at a July 15 legislative hearing. AllAfrica reported the figures, which detail shortfalls at individual plants including Firestone at 1,700 tons below its 7,500-ton requirement and Lee Group at 5,400 tons below its 6,000-ton need.

Brokers export roughly 22,000 tons of unprocessed rubber monthly, the ministry said, diverting supply from local factories.

Executive Order No. 166, issued by President Boakai, bans all such exports to protect domestic industry and encourage value-added manufacturing. President Boakai stated the order preserves jobs and moves Liberia away from raw-material exports.

The Ministry of Agriculture added that an unregulated export market reduces tax revenue and industrial employment, citing similar bans in Ivory Coast and Ghana. Saye Keyeh, speaking for brokers and some smallholder farmers, countered that the order grants excessive power to processors, reduces competition, and forces farmers to accept lower prices.

The government responded by implementing a standardized pricing framework benchmarked to global rates.

Jeety Rubber owner Mr. Upjit Sachdeva told the hearing his plant faces a daily shortfall of about 200 tons that could rise to 350-400 tons in coming months. The company holds only 30 to 35 days of reserves against a required three-month stockpile, he said, putting roughly 600 workers at risk of layoffs.

Sachdeva stated Jeety pays the government-fixed rate of $814 per ton plus an $86 incentive, delivering $900 directly to farmers. Stronger enforcement of the export ban would allow the company to expand capacity from 5 to 13 tons per hour, create 400 new jobs, and add 75 positions through a new power plant, he added.