KOTTAYAM(Commodity Online): India rubber planters are agitated over the rising production costs and wage increase caused by the steep rise in imports and the falling prices. To contain this crisis situation they are calling for a hike in import or anti-dumping duty.
The industry has switched the countries from which rubber is being imported. The rubber from Indonesia and Vietnam gets preference over Thailand. Similarly a shift in preference is visible in the type of variety also: a shift from ribbed smoke sheet (RSS) to technically specified rubber (TSR).
Top exporter Thailand has given nod to sell 200,000 tonne rubber stockpile to ease price pressures and cut storage costs. Industry analysts are of the view that this action is likely to force the Indian rubber imports to surpass 400,000 tones in this financial year.
Meanwhile, Vietnam, in a bid to bolster its rubber exports, has plans to slash its export tax from one percent to zero. The last time Vietnam reduced its export tax was in November, cutting a three per cent tax on centrifugal rubber and synthetic rubber to the current zero level. Vietnam’s tax cut will also result in the surge in Indian rubber imports.
India’s rubber imports stood at 325,190 tonnes in 2013-14 while it was 217,364 tones in 2012-13. According to the Rubber Board data, during the April-July period India imported 133,789 tonnes. This was 90,580 tonnes in the same period of FY14. In July, the imports were 36,997 tonnes.
India is the world’s fifth-largest natural rubber producer but its farmers have been worried over the declining prices prompted by imports. The tyre-makers, upbeat over the revival in auto industry, are buying more Natural Rubber from overseas markets.
– Commodity Online
