Natural rubber (NR) exports in 2013-14 shrunk to one-fifth of the previous year. In a vivid indication of the domestic market logjam, NR imports surged 49% over the same period. According to provisonal data with the Rubber Board of India, the country exported only 5,381 tonne of NR in 2013-14 against 30,594 tonne in 2012-13. The fall is as high as 82%.
And, for the first time in 2013-14, NR imports crossed the 300,000-tonne mark. From 217,364 tonne in 2012-2013, NR imports surged to 324,467 tonne.
It was also the first time that the rise in imports was over 1 lakh tonne, Rubber Board sources told FE. In fact, in March alone, imports spurted 144% over the same period previous year. In March 2013, NR imports totalled a mere 9,921 tonne. In March 2014, imports were as high as 24,196 tonne.
Throughout the year, international prices in Bangkok, Singapore and Tokyo were about R17/kg less than the domestic price. Imports are feasible only when there is at least a R12/kg differential between international and domestic prices.
The main reason for the fall in NR production is the failure of the Board’s replantation iniatives. It has been estimated that nearly 30% trees in rubber plantation acerage have been in the ‘old tree’ category, where latex output is not optimal. Since most rubber farms are in the under-2-hectare category, farmers have been shying away from cutting down a yielding tree. After replantaion, a sapling takes seven years to yield rubber.
The rubber board, which had announced a production estimate of 960,000 tonne for 2014, was forced to cut the estimate twice.
At first, the estimate was reset at 870,000 tonne. Later, this was further whittled down to 850,000 tonne. It is understood that even this revised estimate could not be reached. The board has acknowledged a 7.6% fall in production during 2013-2014.
– financialexpress.com
