KOTTAYAM(Commodity Online): Panic is spreading among India rubber growers, owing to the steep fall in domestic rubber prices as it plunged below Rs 130 a kg level on Thursday in domestic markets. This is the sharpest fall in five years. Further fall is likely, raising fear among the growers. Experts say the price is likely to touch Rs 120 a kg.
In the southern Indian state Kerala, the plantations are passing through a gloomy phase as tapping has come to a halt in most small and medium sized plantations. The growers say the higher wages and expenses against poor returns forced them to keep away from tapping.
The demand for rubber is falling in domestic markets. And rising imports in the current year are posing greater threat to the prices. 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.
A recent study conducted by Automotive Tyre Manufacturers’ Association (ATMA) has reported that 45% of plantations in India fall in aged and low-yielding category. The ageing trees pose the threat of low yield thereby signalling a cut in production. ATMA had urged the India Rubber Board to encourage farmers with higher re-plantation subsidies.
– Commodity Online
