KOCHI, INDIA(Commodity Online): India planters have sought an immediate ban on the import of Rubber, Cardamom and tea as the sector is heading to severe crisis.
The Association of Planters of Kerala said the tea industry is today making a loss of above ₹25 per kg of made tea. The rubber sector is making a loss of above ₹50 per kg of natural rubber produced.
Cardamom growers are also suffering a loss of ₹200 per kg due to cheaper imports and inferior quality Guatemalan cardamom, the association said.
There is a severe mismatch between cost of production and the the price. The cost of production for tea is ₹110 and ₹120 and average price of teas is less than ₹85.
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In the case of rubber the cost of production is above ₹150 per kg whereas the average price realised by the grower hovers around ₹103.
The lower prices and oversupply in the international markets coupled with uncontrolled imports are cited are the major reaosn for this crisis.
Rubber farmers are seen switching to more lucrative crops like nutmeg and cocoa. Adding more pressure to their woes the slump in crude oil prices has exerted negative impact on the industry.
As Synthetic rubber is made from petroleum products, cheaper crude prices have a direct impact on its prices. When buyers opt for cheaper synthetic rubber, demand for natural rubber will be hurt.
In India, rubber prices have fallen by 24% in the last 12 months to 118 rupees per kilogram. The drop in prices has prompted farmers to abandon tapping and switch to other commodities.
In 2013, world tea production touched 4,819 million kg after crossing the crucial milestone of 4 billion kg in 2010 and India crossed the benchmark figure of 1,200 million kg last year.
India exported 146.17 million kilograms of tea during January to September period this year, down 1.5% year-on-year. India’s tea production in September edged up 1.1% from a year earlier to 158.1 million kg.
– Commodity Online
