The Rubber Processors Association of Ghana (RUPAG) has indicated that preliminary industry indicators suggest that the temporary restrictions on raw natural rubber exports are beginning to foster increased domestic market activity, industrial growth, and value addition within Ghana.
The Association noted that recent procurement figures reflect a rising domestic demand for raw rubber and enhanced opportunities for stakeholders throughout the rubber value chain.
In a statement issued by RUPAG and disseminated to the Ghana News Agency in Accra, it was reported that local processors acquired approximately 30,967 tonnes (dry) of raw rubber between January and June 2026, in contrast to approximately 21,627 tonnes (dry) during the same timeframe in 2025. This marks an increase of approximately 43 percent in domestic purchases.
Mr. Perry Acheampong, Secretary of RUPAG, stated that these figures suggest that concerns regarding potential market losses for farmers, traders, and aggregators due to the temporary export restrictions have not materialized. He elaborated that purchases from traders and aggregators surged significantly from approximately 5,987 tonnes (dry) during January-June 2025 to approximately 13,431 tonnes (dry) during the corresponding period in 2026, representing an increase of approximately 124 percent. Likewise, purchases directly from farmers rose from approximately 15,640 tonnes (dry) to approximately 17,535 tonnes (dry), reflecting an increase of approximately 12 percent.
“The preliminary data indicate that domestic market activity is expanding and that opportunities continue to exist for farmers, traders, and aggregators,” Mr. Acheampong remarked.
He emphasized that local processors have consistently procured raw materials while maintaining competitive prices above the monthly minimum factory gate prices established by the Tree Crops Development Authority (TCDA). He asserted that the emerging trends underscore the significance of retaining strategic raw materials to bolster domestic industrial growth.
Mr. Acheampong suggested that the temporary export restrictions should be contextualized within Ghana’s broader industrialization agenda and the Government’s 24-Hour Economy Policy. He observed that local processing yields substantially greater economic benefits compared to the export of raw materials.
“Every additional tonne processed locally supports employment in factories, transportation, logistics, freight forwarding, warehousing, and other ancillary services while also generating taxes and foreign exchange earnings for the country,” he stated.
Industry projections indicate that local value addition could generate approximately US$1.36 billion in additional foreign exchange earnings and approximately GHS326 million in additional tax revenues between 2026 and 2031.
Mr. Acheampong explained that local processors are already enhancing production and preparing to progressively expand operations in alignment with the Government’s vision of a 24-hour economy.
“The long-term objective should be to ensure that Ghana derives maximum value from its natural resources by processing a greater proportion of its rubber locally rather than exporting raw materials,” he asserted.
He noted that Ghana’s policy direction aligns with international trends in the rubber industry, highlighting that several producing countries have implemented measures to prioritize domestic processing and value addition. Côte d’Ivoire and Liberia have enacted restrictions on raw rubber exports to support local industries, while Nigeria processes nearly all its natural rubber into Technically Specified Rubber (TSR) before export.
He also referenced market intelligence published by Helixtap, a Smartkarma Group company, indicating that Malaysia increasingly relies on imported raw rubber, including from Ghana, to sustain its downstream manufacturing industries. According to Helixtap, Ghana currently accounts for approximately 15.2 percent of Malaysia’s natural rubber imports.
“The lesson from other producing countries is clear: countries that process their raw materials create more jobs, generate more foreign exchange, and build stronger industrial economies,” he remarked.
Mr. Acheampong urged for continued engagement and collaboration among all stakeholders to ensure that the transition towards increased domestic value addition benefits all participants within the value chain. He emphasized that farmers, traders, aggregators, processors, transporters, freight forwarders, nursery operators, and regulators all play crucial roles in establishing a competitive and sustainable rubber industry.
“The early indications are encouraging. While implementation challenges persist and stakeholder concerns must continue to be addressed, the available evidence suggests that the policy is progressing in the right direction and should be allowed to mature,” he concluded.
He added that strengthening domestic processing would ultimately contribute to job creation, increased exports, enhanced foreign exchange earnings, and greater national economic resilience.
Source: Access Agric
