The utilisation of raw rubber produced in the country has almost quadrupled due to export restriction and subsequent ban imposed this year.
Since the restriction of exports from January this year, and the subsequent outright ban which came into full effect in July this year, local rubber processors have increased raw rubber purchases directly from traders and aggregators from 534 tonnes in April 2026 to 2,028 tonnes in May 2026.
Last month, their purchases hit a record 3,131 tonnes, emphasising the capacity of local processes to utilise all raw rubber produced within the country.
Given the development, the Rubber Processors Association of Ghana (RUPAG) has rejected proposals for an export quota for locally produced raw rubber as the government’s ban on raw rubber export kicks in.
RUPAG stated that given that installed local processing capacity far outstripped local raw rubber production by over 63,000 tonnes annually, the ban on raw rubber export would be of massive benefit to the various industry stakeholders in the economy.
Interview
In an interview that discussed industry conditions in the wake of the ban on raw rubber export and claims about adverse effects of the ban on farmers in particular, the Secretary of RUPAG, Perry Acheampong, said the current conditions provided justification for the ban.
He said between January and June this year, local processors purchased approximately 30,967 tonnes of dry raw rubber (cup lumps), comprising 13,431 tonnes from traders and aggregators, and 17,535 tonnes directly from farmers.
“Purchases from traders and aggregators have increased significantly following the announcement of the temporary ban,” Mr Acheampong told the Daily Graphic.
He said the local economy could generate approximately $1.36 billion in additional foreign exchange earnings between 2026 and 2031 by processing and adding value to local rubber, compared to the export of raw rubber which could yield only up to approximately GH₵326 million in foreign exchange and tax revenues over the same period.
“Every tonne processed locally generates jobs, taxes, logistics activities, transport services, port revenues, and additional business opportunities throughout the value chain,” the Secretary of the association said.
Ban
In April this year, the Minister of Trade, Agribusiness and Industry, Elizabeth Ofosu-Adjare, announced a 10-year ban on the export of raw rubber in order to avail the needed raw materials to local processing factories, to protect jobs for the youth, and to add value and increase foreign exchange earnings from the product.
While the action has faced resistance from raw rubber exporters in particular and other beneficiaries in the raw rubber export trade, data by RUPAG suggest improved resource availability for the group’s members this time around.
“Even more importantly, purchases from traders and aggregators between January and June 2026 rise from 5,987 tonnes to 13,431 tonnes, an increase of 124 per cent over the same period in 2025,” Mr Acheampong said.
“These figures clearly demonstrate that traders and aggregators continue to have access to an expanding domestic market,” he added.
Mr Acheampong said concerns among exporters, especially those claiming that farmers and aggregators were unable to find buyers for their produce in the wake of the ban, were fuelled by mischief to undermine the good intentions for the ban.
“The evidence directly contradicts suggestions that the export ban has destroyed market opportunities,” he said.
The RUPAG Secretary said while all stakeholders had the right to contribute to policy discussions, it was important that such discussions were guided by facts and national interest rather than unsubstantiated claims.
“Various allegations have been made against local processors, including claims that processors are refusing to buy rubber and are creating monopolistic conditions,” the secretary of RUPAG said.
He explained that the scenario would not even offer local processors any advantage when most of them were still servicing loans procured to set up their expensive facilities.
“The temporary ban on raw rubber exports is fully aligned with the vision of President John Dramani Mahama on industrialisation, value addition, increased foreign exchange earnings, job creation and the implementation of the 24-Hour Economy Policy,” Mr Acheampong pointed out.
He insisted that: “Permitting the continued export of scarce raw materials while simultaneously promoting a 24-hour manufacturing economy would be economically contradictory.”
Industry data
Industry data show that Ghana produced approximately 110,800 tonnes of natural rubber in 2025, while installed processing capacity remained at approximately 171,460 tonnes.
The data suggest a structural deficit of more than 60,000 tonnes, meaning actual factory capacity utilisation fell to only 41 per cent in 2025.
“Even if all raw rubber produced in Ghana were processed locally, existing factories would still be unable to fully utilise their capacities,” the RUPAG secretary said.
He added that under those circumstances, proposals for export quotas were difficult to justify on economic grounds.
International circumstances
The policy direction being pursued by Ghana is consistent with international trends.
Cote d'Ivoire and Liberia have adopted measures restricting raw rubber exports to support local processing industries, while in Nigeria, virtually all natural rubber produced is processed into Technically Specified Rubber (TSR) before export.
According to recent industry intelligence published by Helixtap, a Smartkarma Group company, Malaysia is experiencing declining domestic rubber production but continues to strengthen its downstream manufacturing sector through value addition and increasing reliance on imported raw materials, including imports from Ghana.
Helixtap reports that Ghana currently accounted for approximately 15.2 per cent of Malaysia's natural raw rubber imports, which indicates market exists for semi-processed rubber exports from Ghana.
Way forward
The RUPAG secretary said the temporary export ban on raw rubber could not disadvantage any stakeholder, but instead would protect national industrial interests, create sustainable jobs, increase foreign exchange earnings and maximise value addition within the country.
Mr Acheampong said local farmers, traders, aggregators, processors, transporters, freight forwarders, nursery operators, regulators and the government all carried a shared interest and responsibility in building a strong, sustainable and globally competitive rubber industry.
He consequently called on all stakeholders to work together in the national interest and avoid divisive tendencies that could undermine Ghana's industrialisation agenda.
The association assured farmers that local processors would continue to pay competitive prices for raw materials.
