KOCHI: Even as the rubber industry is worrying about the shortage of natural rubberand the rise in prices, the Rubber Boardfigures for June show that the drop in production is not as bad as it is made out to be.
The production of natural rubber in June is given as 54,000 tonne, over 8% lower than previous month, while consumption at 82,000 tonne showed a 1.2% fall in the same period. According to the board, the stock at the end of June 2013 is 2.25 lakh tonne. Imports at 19,695 tonne recorded an almost 14% rise indicating the industry’s intentions.
The rubber industry has been arguing that the production drop is much worse and has requested for duty-free imports of rubber. “We have been able to procure only 40% of our requirement of NR in the last one month. While Rubber Board had projected a production of 64,000 tonne of NR in June, our interaction with dealers has revealed that approximately 30,000 tonne of NR has been produced and released in the market. As a result the production schedules in the industry have been hampered,” said Niraj Thakkar, president ofAll India Rubber Industries Association (AIRIA). A sharp rise in the natural rubber prices in the last few days combined with a supply shortage has left operations in rubber SMEs in disarray, he said.
“In a challenging economic environment, a sudden rise in NR prices, the key raw material, has added to the cost push eroding the already wafer thin margins of the rubber small and medium enterprises. There are no signs of a cool down in prices. What is more worrisome is that even at these high prices the rubber is just not available. ” said Niraj Thakkar, President AIRIA.
Source: India Times
