KOCHI(Commodity Online): Further Crisis is looming over Rubber as concerns about over supply., demand from top consumer China have increased resulting in fall in prices. India and other Southeast Asian countries are facing the impact of the fall in prices.
Top exporter Thailand has given nod to sell 200,000 tonne rubber stockpile to ease price pressures and cut storage costs. Thailand’s normal monthly Rubber exports stands at 250,000-300,000 tonnes . A more than 25% fall in prices is extending its negative impact over these countries.
India, the world’s fifth-largest natural rubber producer, is worried over the declining prices prompted by imports. The farmers are in distress and they urged the government many times to freeze the imports. But the government has ruled out possibilities of hiking import duty. According to Rubber Board data,the prices have fallen from Rs. 13050 on August 16 to Rs13000 and is going steady on as on Monday.
A study conducted by Automotive Tyre Manufacturers’ Association (ATMA) has confirmed 45% of India Rubber plantations are aged and low-yielding. The ageing trees pose the threat of low yield thereby signalling a cut in production.
