Rubber exports surge 1,500%

Lower domestic prices spur overseas demand.

Rubber exports rose by a whopping 1,472.68 per cent in February 2008. According to the latest estimates of the Rubber Board, exports touched 10,818 tonnes against a meagre 721 tonnes in the same month of 2007.

The shipments grew by 3,296 tonnes against the last month's 7,522 tonnes. Total exports in December 2007 was 3,886 tonnes.

The growth is expected to continue this month also on lower prices. As on March 6, total exports stand at 43,727 tonnes, while the total shipment in 2006-07 was 52,993 tonnes. The board is optimistic of reaching the last year's exports figure.

The board had set an exports target of 70,000 tonnes for the current financial year, which it scaled down to 25,500 tonnes on account of a sharp drop in overseas sales during October-November. But now it is confident of exporting over 50,000 tonnes as global market is favourable for India.

Imports of natural rubber are also on the surge. Till February, imports stood at 83,189 tonnes against 74,335 tonnes in the same period of the last financial year.

In February, the country imported 4,702 tonnes against 18,853 tonnes in the same month last year. Total imports during the current financial year is expected to be 85,000 tonnes, according to an industry estimate.

Meanwhile, the domestic stock of natural rubber increased by 20,000 tonnes to touch 202,000 tonnes by February-end. According to the board's estimates, it will come down to 180,000 tonnes by the end of this financial year on increased exports.

Today, prices of RSS-4, the bench mark grade of domestic market, was quoting at Rs 105 a kg. Global prices are hovering around Rs 115 a kg.