 "Natural rubber imports up 80 per cent in April-May")
Natural rubber imports were up 80 per cent during the April – May period compared with the same period in 2013-14 according to the latest figures of the Rubber Board. About 63,559 tonnes were brought in during the two months compared with imports during the corresponding period last year.
However, India’s exports put up a poor show, dropping 98 per cent to just 40 tonnes, compared with the 1,723 tonnes during the April – May period of 2013-14. Only 11 tonnes were exported in May.
A sharp drop in the international prices of natural rubber over the local prices is the chief reason for the rise in imports. For the last one year, local prices were up Rs 20 on average over the prices recorded in the global markets, mainly in the Bangkok market. The Bangkok market on Monday quoted Rs 119 for a kg while the price in Kottayam and Kochi markets was Rs 144 per kg.
India’s imports in 2013-14 was 324,467 tonnes while the yearly production was 844,000 tonnes. For the first time, imports crossed the 300,000-tonne mark. This year, it is expected to cross 400,000 tonnes. Natural rubber prices nosedived in the world market due to a glut, visible continuously for the last four years. The weakening of global demand, especially in China, world’s largest consumer, is the main factor for the incessant fall in prices during the last 12 months.
Meanwhile, production during April and May dropped 7 per cent to 104,000 tonnes compared with 112,000 tonnes during the same period of the previous financial year. According to Rubber Board data, consumption had a slight increase of 0.4 per cent at 165,000 tonnes. This was 164,305 tonnes in April – May period of last FY.
According to the board, production during 2013-14 was down 7.6 per cent at 844,000 tonnes as against 913,700 tonnes in last financial year. This is for the first time during last 10-year period that natural rubber production recorded a dip.
However, India’s exports put up a poor show, dropping 98 per cent to just 40 tonnes, compared with the 1,723 tonnes during the April – May period of 2013-14. Only 11 tonnes were exported in May.
A sharp drop in the international prices of natural rubber over the local prices is the chief reason for the rise in imports. For the last one year, local prices were up Rs 20 on average over the prices recorded in the global markets, mainly in the Bangkok market. The Bangkok market on Monday quoted Rs 119 for a kg while the price in Kottayam and Kochi markets was Rs 144 per kg.
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The price of SMR-20, which is almost equivalent to RSS-4 grade for all practical purposes, is available at Rs 98 per kg in Bangkok trading. So, import is the natural option for the industries, especially for the tyre makers, even at remitting the import duty. According to experts, import is likely to be 50 per cent of the annual production in India during the present financial year.This financial year, imports are likely to cross 400,000 tonnes going by the trends.
India’s imports in 2013-14 was 324,467 tonnes while the yearly production was 844,000 tonnes. For the first time, imports crossed the 300,000-tonne mark. This year, it is expected to cross 400,000 tonnes. Natural rubber prices nosedived in the world market due to a glut, visible continuously for the last four years. The weakening of global demand, especially in China, world’s largest consumer, is the main factor for the incessant fall in prices during the last 12 months.
Meanwhile, production during April and May dropped 7 per cent to 104,000 tonnes compared with 112,000 tonnes during the same period of the previous financial year. According to Rubber Board data, consumption had a slight increase of 0.4 per cent at 165,000 tonnes. This was 164,305 tonnes in April – May period of last FY.
According to the board, production during 2013-14 was down 7.6 per cent at 844,000 tonnes as against 913,700 tonnes in last financial year. This is for the first time during last 10-year period that natural rubber production recorded a dip.