Rubber dumping duty on Brazil, EU

India has imposed anti-dumping duties on imports of natural rubber from the European Union and Brazil. The duties range from $136.47 per tonne to $304.37 a tonne, an official release said Thursday.

"The domestic industry suffers from material injury in terms of loss of market share, low capacity utilisation and profitability, and the injury has been caused to the domestic industry both by volume and price effect of dumped imports...," the release said.

The anti-dumping duties would be effective till December 2005 and payable in Indian currency, the release said.

India is the third largest producer and fourth largest consumer of rubber. The size of the domestic rubber industry is Rs 12,000 crore. Rubber production in the country is primarily concentrated in some regions of Kerala.

Meanwhile, Rubber prices are seen up by a rupee per kg with the arrival of monsoon rains in the rubber growing areas of Kerala, traders said.

Rubber supplies are hit as tapping slows down during monsoons and improve immediately after the rains.

"Though we do not see much activity in the rubber market, shortage will lead to a marginal rise in prices due to the monsoon rains. The rise in the spot market will reflect on futures trade also," said Ashok Khurana, who trades on the National Multi-Commodity Exchange of India. He said June and July futures may go up by Rs 10 per 100 kg.

June and July futures will not rise beyond this level as buyers are not taking new positions in the June contract, which will expire on June 15.

The July contract will not rise much either as tyre makers have booked bulk import orders, apprehending rubber shortage during the month, said Ketan Joshi, who also trades on the NMCE.

Last week, tyre companies imported about 8,000 tonne of rubber. Khurana said though Indian rubber prices have risen, international prices are still higher.