Editorial:Rubber processors hail restriction of raw rubber exports in budget

Rubber processors in the country are content that there are genuine moves to restrict exports of raw rubber from Ghana.

Indeed, the Rubber Processors Association of Ghana (RUPAG) has hailed the policy since it is expected to revive factories, protect thousands of rural livelihoods and stop massive foreign-exchange leakages.

Captured in paragraph 1028 of the 2026 Budget under the ‘Feed Industry’programme, RUPAG General-Secretary Mr. Perry Acheampong described it as “historic, forward-looking and long overdue”.

The rubber sector has been bleeding for years due to uncontrolled exports of raw rubber, known as cuplumps, which have surged to record levels. This trend has deprived local processors of essential inputs and weakened the industry’s competitiveness.

As a result, factories have been operating below capacity, investments have become unstable and outgrower financing schemes have come close to collapsing.

The sector has also suffered significant losses in foreign exchange earnings, deepening concerns about its long-term sustainability.

In RUPAG’s statement hailing the move, it notes that this policy realigns the entire value chain with the country’s industrialisation agenda and protects more than 70,000 rural livelihoods.

The statement further says the spike in raw rubber exports over the past four years created a perfect storm: weakening factory operations,creating job losses and threating repayment of over GH¢650million in outgrower loans.

With processors unable to secure enough raw materials, the economy has been losing both economic value and industrial momentum.

Analysts believe the new restriction plugs a major loophole and ensures raw materials remain within the country to fuel domestic manufacturing. They add that the move aligns strongly with government’s broader industrial transformation agenda – particularly the 24-hour economy initiative, which relies on consistent raw materials access to sustain continuous production cycles.

Stabilising raw material flow will immediately restore factory utilisation, boost tax revenue and improve foreign-exchange retention.

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