Although there is demand for rubber and rubber sheets in the global market, Bangladesh has been unable to make progress in this promising sector. Instead, import costs are rising. The 18 government-owned plantations under the Bangladesh Forest Industries Development Corporation (BFIDC) are also in poor condition. Compared with privately owned plantations, their production is negligible, leaving the government to incur losses in the rubber sector.

In FY 2023–24, the government suffered a loss of BDT 93.8 million from these rubber plantations.

Records show that in 1910, seedlings from the Calcutta Botanical Garden were sent to the Baramasia tea estate in Chattogram and the Amu tea estate in Sylhet. In 1952, the Forest Department planted rubber saplings in Madhupur of Tangail, Hazarikhil of Chattogram, and Tetulia of Panchagarh. In 1959, following a feasibility assessment, Lloyd, an expert from the Food and Agriculture Organization (FAO) of the United Nations, recommended commercial rubber cultivation in Bangladesh. Subsequently, in 1960–61, a pilot project was launched under government sponsorship on 710 acres of land in the hill districts of Chattogram and Sylhet. Later, Bangladesh moved into commercial production by cultivating rubber on 40 acres in Ramu and 10 acres in Raozan under this project. The project was then handed over to BFIDC to expand rubber cultivation, and 18 government plantations were eventually established — nine in Chattogram, four in Sylhet, and five in Tangail.

According to the Bangladesh Rubber Board, there are now 147,333 acres of rubber plantations in the country, producing 70,357 tons. Of this, BFIDC controls 37,683 acres, which produce 5,556 tons, with a yield of 0.147 tons per acre. Privately owned plantations cover 64,332 acres and produce 50,730 tons, with a yield of 0.789 tons per acre. Currently, private plantations account for 72 percent of the country’s total rubber production.

According to data available on the Bangladesh Rubber Board’s website, the country’s rubber plantations are under 14 different ownership categories, including BFIDC. In terms of acreage, BFIDC holds the second-largest share, while the highest acreage belongs to private ownership (Standing Committee).

Small rubber plantation owners together control 2,998 acres, producing 3,971 tons of rubber, with an average yield of 1.32 tons per acre. The Chittagong Hill Tracts Development Board (CHTDB) oversees 13,200 acres but produces only 250 tons — just 0.018 tons per acre. The Khagrachhari Rubber Owners Cooperative has 1,790 acres producing 2,907 tons, or 1.62 tons per acre, the highest yield rate in the country. In Rangamati, privately owned plantations cover 351 acres, producing around 43 tons of rubber.

Among corporate plantations, Duncan Brothers (Bangladesh) owns 4,892 acres and produces 2,398 tons. James Finlay’s 5,000 acres produce only 550 tons. MS Rajib Ali’s 1,529 acres yield 1,445 tons, while Ispahani Neptune’s 1,068 acres produce 560 tons. BRAC’s 850 acres produce 162 tons, and Chittagong Meridian Agro Industries’ 775 acres yield 195 tons. The Bangladesh Tea Association owns 12,244 acres of rubber plantations, producing 4,648 tons. Meanwhile, privately owned plantations across other districts total 24,683 acres, producing 31,228 tons, or 1.26 tons per acre. These plantations produce 1.108 tons more per acre than BFIDC’s plantations.

When asked why state-owned plantations had the lowest yields, BFIDC Chairman (Additional Secretary) Md Nasir Uddin Ahmed told Bonik Barta, “A rubber tree’s life cycle is 32 years. Around one million of our trees have already completed their cycle, so they produce little to nothing. Most of our plantations are very old, and we don’t have high-yield hybrid varieties. Many private growers use hybrids, which is why their output is higher. We’ve taken steps to import improved clones from Sri Lanka. The government has also approved a project to plant 1 million new saplings, and the work has already started. We expect production to increase significantly within the next few years.”

There is strong demand for rubber and rubber sheets in both domestic and global markets, which has led to annual rubber imports. As a result, import costs increased last fiscal year, while export revenue also rose. According to data from the National Board of Revenue (NBR), compared to FY 2022-23, rubber and rubber sheet imports fell by 53 percent in FY 2023-24. However, by May of FY 2024-25, imports had increased by 32 percent, pushing import costs up by 66 percent. In FY 2022-23, rubber imports totaled over BDT 1.38 billion. In FY 2023-24, import costs fell to BDT 647.3 million. By May of FY 2024-25, import spending had risen to over BDT 1.07 billion.

Meanwhile, according to the Export Promotion Bureau (EPB), export revenue from rubber and rubber sheets reached $7,598,724 by May of FY 2024-25. In FY 2023-24, exports totaled $2,289,428. And in FY 2022-23, export earnings were $2,306,421.

A report from the BFIDC notes that in FY 2023-24, the government incurred a loss of BDT 93.85 million in the rubber industry. That fiscal year, government revenue exceeded BDT 1.32 billion, while operating expenses were BDT 1.42 billion. The latest audit report for FY 2024-25 has not yet been released by the government agency.

However, the BFIDC Chairman claims that rubber plantations were profitable in the recently concluded fiscal year. Speaking to Bonik Barta, he said, “Earlier we were at a loss. In the latest fiscal year, we turned a profit. Unaudited figures show a profit of around BDT 2.5 billion. The final audit may adjust this slightly up or down, but we will remain in the black.”

The government-owned rubber plantations are divided into the Chattogram, Sylhet, and Tangail-Sherpur zones. Among these three zones, the Sylhet zone includes the Vhatera Rubber Garden, Satgaon Rubber Garden, Sahajibazar Rubber Garden, and Rupaichara Rubber Garden. In the 2023-24 fiscal year, these four plantations alone incurred a loss of BDT 135.72 million. Against an income of BDT 222.1 million, government expenditure amounted to BDT 357.84 million. In the Chattogram region, however, the nine BFIIDC plantations generated a profit of only BDT 14.5 million in the same fiscal year. The five plantations in the Tangail-Sherpur region produced a profit of more than BDT 27.3 million.

The Bangladesh Rubber Board and the Bangladesh Forest Industries Development Corporation operate under the Ministry of Environment, Forest, and Climate Change. The ministry’s adviser, Syeda Rizwana Hasan, told Bonik Barta, “The government has initiated efforts to increase rubber production by importing clones. Applications for clones have already been submitted to Malaysia and Sri Lanka. One country has responded to the application. At the same time, the government is preparing a master plan to promote a diversified forest-based industry from the rubber sector.”