Natural rubber import was up 41% during April–January [10 months] period of the current financial year at 279,627 tonnes. In the same period of the previous financial year this was 197,946 tonnes.
But during the month of January, the imports have slowed down 20%. The monthly import in January was 19,696 tones only as against 24,505 tones in January, 2013. This was for the first time in the current financial year import records a monthly drop. This is mainly due to the hike in the import duty of rubber as the local prices had dropped sharply during last three months.
Interestingly, import till January had crossed the total annual import in 2012-13. The final import figure in 2012-13 was 217,364 tones only. It is almost certain that import would cross the 300,000 tonnes mark by the end of March, 2014, as per the current trend despite the duty hike.
There is a price advantage existing in the overseas markets. Local market today quoted Rs 147 for a kg of RSS- 4 grade, but in Bangkok the tag was only Rs 133.
Production, consumption drop
Both production and consumption of rubber dropped with production falling 9 % during April – January period of the current financial year. According to the latest estimates of the Rubber Board, production in April–January dropped 9 % at 723,000 tones as against 798,200 tones in the same period of last FY. Compared to the lower trend of production, consumption did not decrease much as only 1 % fall was registered. Consumption during the ten-month period of this fiscal dropped to 811,110 tonnes, compared to 818,290 tonnes in April- January period of 2012-13.
|
Volume (in tonnes) |
Apr-Jan 2014 |
Apr-Jan 2013 |
Variation (%) |
|
Production |
723,000 |
798,200 |
-9% |
|
Consumption |
811,110 |
818,290 |
-1% |
|
Import |
279,627 |
197,946 |
41% |
|
Export |
5,357 |
15,632 |
-66% |
|
Source: Rubber Board |
|
|
|
The bad trend in production may seriously affect the availability of the commodity over the next four–five months. Summer season is the lean season for production and it will pick up during monsoon. Rubber Board sources said that the total production in this fiscal would be confined to 870,000 tonnes only. It may go down beyond that. Intensive rain and the widespread incidence of abnormal leaf fall are the main reasons for decline in production.
Board had earlier projected a production of 960,000 tonnes in 2013-14 and consumption at 1,020,000 tonnes, with an overall annual deficit of 60,000 tonnes. According to growers, production is likely to be dropped to 800,000 tonnes as per the current trend.
During 2012-13 India produced 912,200 tonnes of rubber registering 0.9% rise over the previous financial year. Instead of this 7-8% drop in production is almost certain in this fiscal.
In April–January period, India could export only 5,357 tonnes as against 15,632 tonnes, registering a fall of 66%.Source:
Source: .business-standard.com
