KOCHI,INDIA(Commodity Online): Lack of demand is sapping India rubber prices. The chief reason for this is the disparity between the domestic and international markets and the absence of genuine buyers.
RSS 4 weakened further to Rs.116 (117) a kg, according to traders. The grade declined to Rs 117 (117.50) and Rs 114 (114.50) a kg respectively as quoted by the Rubber Board and dealers. The trend was mixed.
Farmers are seen switching to more lucrative crops like nutmeg and cocoa. Adding more pressure to their woes the slump in crude oil prices has exerted negative impact on the industry.
In India, rubber prices have fallen by 24% in the last 12 months to 118 rupees per kilogram. The drop in prices has prompted farmers to abandon tapping and switch to other commodities.
India is the world’s fifth largest producer of rubber. The state-run Rubber Board has said the country’s October natural rubber imports increased 27.7 per cent from a year ago to 36,865 tonnes.
The surge in imports is mainly as a result of increased overseas purchases made by tyre makers due to a drop in domestic production. Higher imports are the main reason that hurts the prospects of the farmers.
– Commodity Online