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Can the local rattan manufacturing industry survive in today’s world?

02 Mar 2022

  • Researchers identify several challenges regarding resources, markets, space, and culture
BY Ruwan Laknath Jayakody  The major challenges in the rattan manufacturing industry pertain to resources, markets, space and culture. The resources-related challenges are with regard to the shortage of raw materials, and the shortage of trained and adequate human resources (HR). The markets (local and foreign)-related challenges involve the increased cost of production, the increase in the prices of manufactured goods, and the arrival of substitutes. The locally faced challenges concern the increase in the market tax rent, the reduction of profits, and the heavy expenses borne for transporting raw materials. Culture-related challenges concern producers being considered inferior in society, and the decreasing contribution of the current generation. These challenges were identified by R.M.K. Rathnayaka (attached to the Kelaniya University’s Social Sciences Faculty’s Geography Department) and D. Kodithuwakku (attached to the same faculty’s Social Statistics Department) in a research on the “The current challenges in Sri Lanka’s rattan manufacturing industry” which was published in the TRIVALENT Journal of Archaeology, Tourism and Anthropology 2 (1) in December 2021.  Rathnayaka and Kodithuwakku’s study focused on the rattan and rattan items/products manufacturing industry in the Radawadunna Grama Niladhari (GN) Division in the Meerigama/Mirigama Divisional Secretariat Division in the Gampaha District of the Western Province. The rattan manufacturing industry forms part of the primary economic activities, the latter activities which are influenced by, according to a Chinese study, factors such as labour, raw materials, markets, etc. Rathnayaka and Kodithuwakku mentioned that the artisans who make rattan products are called “Kulu Pottan/Potthan”, and that names of villages such as Wewelduwa, Wewel Kandura, Wewelwala, Wewelpathana, and Weweldeniya indicate the existence of the said industry. Different types of rattans such as heen rattans, white rattans, ma rattans, kambotu rattans, nara rattans, Malaysian rattans, kekuna rattans, ela rattans and well ripped rattans, Rathnayaka and Kodithuwakku explained, are used when manufacturing rattan products.  Rathnayaka observed in “Current trends related to the trade in cane products: By the Radawadunna GN Division” that rattan products are very popular among Sri Lankans as well as foreigners. Rathnayaka and Kodithuwakku added that rattan products include those used in the kitchen, ladders, and decorative products placed in the living room and bedroom, animal figures, various formats, wall hangings, lamp sets, etc.  Rathnayaka and Kodithuwakku’s research was carried out using a mixed methodology, under the inductive approach. Quantitative and qualitative data collected from primary (questionnaires, and structured and semi structured interviews) and secondary (District/Divisional Secretariat Division office, resource profile, District statistical handbooks, websites and journal articles) sources were used. The reason for selecting Radawadunna for the study and selecting the sample was that this area is identified as a place that is significantly famous for rattan-related products and trade.  More than 15% indicated that the shortage of raw material (16.8%) and the high raw materials transportation cost (16.1%) are the burning issues regarding rattan production. In addition to these variables, producers being considered culturally inferior in the society (12.9%), high production costs (11%), and the high prices of manufactured goods (10.3%), represented more than 10%. Furthermore, arrivals of substitutes (5.2%) and increased market tax rent (5.2%) indicated around 5%. The variables were the decreasing contribution of the current generation (7.1%), the reduction of profits (7.7%), and traditional industrialists experiencing ageing and the lack of staff (7.7%). It was confirmed that among the 10 initial variables, the increase in the prices of manufactured goods, the arrival of substitutes and the decreasing contribution of the current generation load more highly on the first common factor which is resource scarcity, while the increase in the market tax rent and the increase in the production cost load more highly on the second common factor which is market-related factors, and the increase in the production cost and transporting raw materials costing a lot of money load more highly on the third common factor which is spatial factors, and the reduction in profits, traditional industrialists experiencing a lack of staff and these producers being considered inferior to society, culturally speaking, load more highly on the forth common factor which is cultural factors. Resource scarcity It was identified that the shortage is of both physical/raw materials and human/employees resources.  “In the past, it was easy to get raw materials from this area, but today the situation has changed. As a result, those engaged in this industry have had to import raw materials from other areas. Raw material is currently being transported, especially from Ampara and Trincomalee of the Eastern Province, Mahiyanganaya (in the Badulla District of the Uva Province), and Polonnaruwa (North Central Province). Thus, manufacturers have to spend extra money to transport raw materials to the market from the above mentioned remote areas. Accordingly, there is an impact value of the raw material shortage. In addition, a shortage of human resources was identified as another challenge as there was a shortage of quantitative as well as qualitative human resources. The main challenge here is the lack of experienced workers due to the ageing of traditional industrialists. Since the rattan manufacturing industry is based on skills, it is very important to have more skilled labourers, and therefore, the lack of skilled labour is a current challenge associated with this industry,” Rathnayaka and Kodithuwakku noted. Market challenges The primary challenges identified under market challenges were an increase in the production cost, the increase in the prices of manufactured goods and the arrival of substitutes.  “Several key factors such as the high cost of exporting rattan products, the need to pay various commissions on transportation, the high cost of labour due to the shortage of labour, and the increase in market rents, contribute to increasing the cost of rattan products. Due to these factors, the cost of production of rattan products is very high and the shop owners have to increase the selling price of rattan products. Due to this situation, the number of local and foreign buyers is less than before. Another challenge is the availability of various substitutes as with the introduction of substitutes made out of plastic, aluminium, and fibre in the market and their prices being lower than rattan products, consumers are more motivated to buy those products,” Rathnayaka and Kodithuwakku elaborated. Local challenges Land is a more important factor in establishing primary economic activities. The main challenges identified locally with the rattan manufacturing industry, include increase in the market tax rent, the reduction of profits and the high cost to transport raw materials. “Some traders keep their shops under rent and the challenge they face is increasing the rent of the shop. In the past, these shops were in houses, but now they are rented out. As a result, traders from other areas continue their businesses for a monthly rent in this area and they face this problem. Thus, the increase in market rent, the higher cost of transporting raw materials, and the increase in production costs cause the reduction of the production-related profits,” Rathnayaka and Kodithuwakku point out.  Cultural challenges “Much of Sri Lanka's trade is still based on culture and the main factor here is to determine their social status based on the trades they make.” Under cultural challenges, the key existing challenges that were recognised at present are these producers being considered inferior to the rest of the society and in terms of the social hierarchy, and the decreasing contribution of the current generation. “Even though the importance of such individuals in the social hierarchy is still evident today, due to this low level of social concern, the contribution of the modern generation to this industry has been minimal,” Rathnayaka and Kodithuwakku emphasised.


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