Rubber stock up 30% on imports

Rise in output may also help push stock to an all-time high of 250,000 tonnes.

A steep rise in the imports of natural rubber has led to an increase in the country's rubber stock. As per the latest estimates of the Rubber Board, the total stock jumped over 30 per cent to 193,000 tonnes by the end of 2007 against 142,000 tonnes last year. In October 2007, the country had a stock of 104,200 tonnes, which rose to 142,000 tonnes in November.

According to experts, the stock of natural rubber will reach an all-time high of 250,000 tonnes by March 2008. The surge has been attributed to the increase in production and the rise in imports.

In 2002, the stock touched an an all-time high of 220,000 tonnes, leading to prices falling sharply. A similar situation is expected in the current financial year.

But a sharp upward trend in the prices of crude oil may make natural rubber dearer, as synthetic rubber will be costlier. According to leading Kochi-based traders, global consumption of natural rubber will increase, pushing the prices higher.

Meanwhile, total imports during April-December 2007, touched 67,070 tonnes against the Rubber Board's earlier target of 60,000 tonnes in FY08. Last year, the country imported 45,266 tonnes. The imports are likely to reach 85,000 tonnes by the end of the current financial year.

The exports, on the other hand, have dropped by 100 per cent during April- December to 22,152 tonnes, against 51,616 tonnes previous year. The board had set the exports target of 70,000 tonnes for 2007-08. But unfavourable global market conditions forced it to cut the target to 25,500 tonnes.