KOTTAYAM(Commodity Online): India witnessed a 14.8% surge in Natural Rubber imports in July due to increased overseas purchases made by tyre-makers. As per a statement by Rubber Board, the imports spiked to 36,997 tonnes in the last month. Meanwhile the Government has said a hike in import duty of Rubber is not under consideration at present.
The auto industry accounts for 65% of India’s rubber demand. They are on path of recovery and they prefer the cheaper imports to purchases from domestic suppliers.
The Rubber production in July was 59,000 tonnes which indicates a 28.3% surge. A 5.5% increase is visible in the consumption of Rubber which was recorded at 88,000 tonnes. India imports Rubber mainly form Indonesia, Thailand, Vietnam and Malaysia.
A hike in import duty has been in demand for sometime in view of the falling prices. Nirmala Sitharaman,Minister of State for Ministry of Commerce and Industry, ruled out the possibility of a duty hike which has been raised to 20% or Rs 30(whichever is lower) in December 2013. The duty was a revision of an earlier 20% or Rs20 (whichever is lower).
As per Rubber Board data, the monthly price fell from Rs13950 to Rs 13800. Spot rubber continued to seek further lows on Wednesday. On NMCE RSS 4 declined to Rs.137.50 (Rs 138.50) a kg, according to traders. The grade fell to Rs 138 (Rs 139) and Rs 135 (Rs 136) respectively, according to the Rubber Board and dealers. August futures dropped to Rs 137.75 (Rs 138.49), September to Rs 135.20 (Rs 136.15), October to Rs 134.15 (Rs 135.20) and November to Rs 133.85 (Rs 135.15)
– Commodity Online
