Due to torrential rain, natural rubber (NR) output declined 7.6 per cent in October, paving the way for a bullish market. The local market continued the uptrend and benchmark grade RSS-4 was today quoted at Rs 195 a kg.
The production dropped to 82,000 tonnes as against 88,775 tonnes in the same month last year, according to latest data by the Rubber Board.
During the month, consumption increased to 81,500 tonnes as against 77,950 tonnes in the same month last year. This was mainly due to an upsurge in production of tyres in the country on rising automobile sales.
During April-October, the average monthly increase in consumption of NR by tyre companies was five per cent.
The production and consumption mismatch caused a serious supply crunch during the past few months, leaving more room for rise in prices.
The static import hampered the supply crunch further. Imports were heavily affected due to the price increase in major global markets and crop losses in producing countries like Thailand and Indonesia.
The domestic production of rubber in the first seven months of the current financial year increased 4.5 per cent at 457,250 tonnes as against 437,400 tonnes in the same period last year.
The consumption in the same period increased three per cent at 550,550 tonnes as against 534,315 tonnes in the same period of 2009-10.
