Rubber prices today jumped by Rs 250 to Rs 16,700 per quintal here on the back increased buying from tyre manufacturers.
The prices of rubber jumped by Rs 250 from Rs 16,450 per quintal to Rs 16,700 today as on September 6, 2010.
"After the government's proposal to cap import duty at Rs 20 per kg, tyre makers postponed buying anticipating low prices. However, after seeing resistance from rubber growers, they have resumed buying, which has led to a jump in the prices of rubber," All-India Rubber Dealer Federation President George Valy told PTI.
Rubber prices in the domestic market have declined from Rs 18,600 per quintal on August 6, to Rs 16,350 per quintal on September 2, and market experts had further predicted that it may further go down to Rs 15,000-level following which tyre makers had postponed their purchases.
However, with rubber growers showing firm resistance in selling their products at this level, tyre makers are resuming their buying here.
Before import duty was fixed, the prices of rubber in the international market stood at around Rs 15,000 per quintal, but following the proposal to cap import duty, they went up to Rs 16,000 per quintal and it may go up to Rs 18,000 per quintal, he said.
