MARKET COMMENTARY
Natural rubber is seen stretching previous day’s gains in the international market on Thursday. SHFE rubber futures rose 1.5 per cent while TOCOM rubber futures are swinging between positive and negative turfs. However, caution prevailed as investors’ eyed the release of key economic indicators from the US amidst simmering Greek debt crisis. In the Indian market, meanwhile, natural rubber traded rather steady on Wednesday. RSS4 in the physical market was hovering near Rs.129 a kg while on NMCE, the most active August rubber futures rose, reversing the previous day’s decline, to end over one per cent high.
MARKET NEWS
Kerala State Chief Minister informed the Assembly that government would ensure that small-scale rubber growers with two hectares of land or less will get an assured price of Rs.150 a kg. A total of Rs 300 crore has been earmarked in the state budget for ensuring fair price for rubber which will be utilized for this new scheme. Rubber inventories in the warehouses monitored by SHFE rose 4.1 per cent on weekly basis to 146329 tonnes. Rubber Board has clarified that Kerala and Kanyakumari dist. Of Tamil Nadu would continue to receive subsidy for planting and replanting rubber. Malaysia plans to use 10 per cent of its rubber supply in roads from 2016 as it looks to eat into excess supplies and shore up rubber prices.
Raising concern over the fall in rubber production for the third consecutive year, the tyre and rubber industries have sought urgent government intervention to stem the slide in domestic production.
Kerala will constitute a subcommittee to look into various issues related to rubber farmers. The committee’s aim is to see that the financial assistance provided by the Government reaches the farmers effectively.
Kerala FM says the central government has assured that the state has not been excluded from the rubber subsidy scheme and also added that the state has sought Rs.500 crore for the rubber procurement scheme announced by the state budget.
The United States imposed duties on certain automobile and light truck tires imported from China after finding they were being dumped at below-market value and unfairly subsidized by Beijing.
Source: Geofin Comtrade
