KOTTAYAM,INDIA (Commodity Online): India’s rubber grower continue to suffer amidst weak demand from tyre industry and weakness in global prices of the commodity.
RSS-4 grade rubber prices have hovered in Rs 14600 per 100 kg to Rs 14500 per 100 kg range in the spot market and despite assurance from the State Government in Kerala that accounts for 90% of the nation’s output of natural rubber, planters remain worried.
Planters and the tyre industry are at logger heads over import of natural rubber. The former argues that it has caused steep fall in prices while tyre and other consuming industries argue that domestic production is not sufficient for their requirements and hence needs to import.
The Association of Planters of Kerala (APK) said prices of natural rubber have reached the lowest point in five years. APK office bearers fear the bearish trend could lead to farmer suicides. India, which is the world’s fifth-biggest producer, is the second-largest consumer of NR in the world after China. Imports of NR have more than doubled in the last few years due to the increasing consumption from a growing economy. Imports during the last fiscal stood at 3,25,190 tonnes as against 2,17,364 tonnes in FY13.
The planters’ body is of the opinion that the unabated imports done by the NR consuming industries are the main reason for this crisis. These consumer cartels are manipulating the domestic natural rubber prices by importing huge quantities during high cropping months and stay away from the market during the lean season.
“The present trend in imports suggests that, in this financial year 2014 -15, the import may exceed the financial year 2013 -14. In the month of May alone, the import is approximately 33% more than that in the same month of last fiscal,” Ajith BK, APK secretary said.
Market update
RSS 4 grade continued to trade weak on lack of demand from tyre industry. The spread between domestic and global markets also continued to dampen buying sentiments.
RSS-4 grade rubber dropped to Rs 14500 per 100 kg. At National Multi Commodity Exchange (NMCE) July futures closed at Rs. 144.20 ( Rs. 144.04), August at Rs. 143.10 ( Rs. 142.60) RSS 3 (spot) firmed up to Rs. 124.53 ( Rs. 123.96) at Bangkok.
Spot rubber rates ( Rs. /kg): RSS-4: 145 (145.50); RSS-5: 141 (141.50); Ungraded: 136 (137); ISNR 20: 132 (132) and Latex 60%: 123 (123.50).
