KOTTAYAM, INDIA (Commodity Online): The sustained disappointment over the domestic prices of rubber has been a cause of worry for the Indian rubber growers. Imports of Natural Rubber (NR) have been rising due to demand from auto sector prompting a fall in the domestic pricing.
The fluctuation in the domestic price has also expanded the gap between the domestic and international prices. The distressed growers are now calling for an increase in the import duty on all rubber goods.
The Indian Rubber Growers Association (IRGA) has urged the Government to increase the import duty on all rubber goods, including tyres, to 8 per cent. They are seeking a temporary freeze on import of NR under the advance licence till domestic prices recover.
The data from Rubber Board shows that India’s NR imports are at 325,190 tonnes in 2013-2014 as against 217,364 tonne in 2012-2013. In 2010-2011 the imports stood at 190,692 tonne and it was 213,785 tonne in 2011-2012.
According to Rubber Board data, the domestic price of rubber in July has fallen to Rs 14000 per 100 kg from Rs 14500 per 100 kg at the beginning of the month. At India’s National Multi Commodity Exchange (NMCE), Rubber futures for August delivery have fallen to 13980 on Tuesday from 14075 per 100 kg at the beginning of the month.
– Commodity Online
