KOTTAYAM, INDIA(Commodity Online): Rubber planters are moving on to a crisis-like situation with international rubber prices falling in the Bangkok market to a seven-year low of Rs 100 a kg. This has resulted in a sharp rise in imports by Indian rubber consuming industries such as the tyre industry.
The planters have written to the India Rubber Board and the commerce ministry for a ‘safeguard duty’ on imports. At present, the import tax is 20 per cent.
The price drop will benefit the tyre companies as Shares of tyre companies Ceat, Apollo Tyres, JK Tyres and MRF Tyres here surged significantly in the past six moths. The shares witnessed a surge of 77.5 per cent from March following the steep fall in natural rubber prices, which will have a positive impact on the companies’ profitability.
In Thailand over 10,000 rubber farmers have threatened to launch protests against the government and demand measures to help counter a slump in prices. But they postponed the stir as agriculture minister suggested a meeting to seek ways to steady the prices.
This is for the first time since 2007 that the international market drops to Rs 100 levels. In September last year, the average price in Bangkok was Rs 160 a kg. Another reason is that the disparity in supply-demand gap. The demand has not matched the rise in supply causing a slide in prices.
– Commodity Online
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