KOCHI,INDIA(Commodity Online): In a bid to increase the price of domestic natural rubber, Kerala Chief Minster Oommen Chandy is about to meet the major tyre makers today.
Rubber growers expect Chandy to discuss a 5% purchase tax waiver on domestic Natural Rubber. This move is expected to deter the tyre companies from buying Rubber from international markets.
The Indian Rubber Growers Association (IRGA) the other day urged the tyre manufacturers to buy rubber from domestic market. The association threatened to boycott the tyre makers if they continue buy cheap rubber from international markets.
The tyre industry has been importing natural rubber at will putting rubber planters into distress. The low international prices prompted them to opt for bulk imports which proved to be a highly profitable move for the tyre industry in India.
India’s natural rubber imports have registered a growth of 19% in November, according to the latest Rubber Board data.
Prompted by the purchases made by tyre makers the imports jumped to 33,156 tonnes in November, the state-run Rubber Board said. On the other hand, production in November plunged by a quarter on year to 64,000 tonnes. This reflects the impact of farmers leaving tapping distressed over price crash.
India’s natural rubber consumption in the month increased nearly 12 per cent on year to 85,000 tonnes, the Board said in a statement.
Spot rubber was mixed on Wednesday. The most active counter RSS 4 improved following reports of the meet with tyre makers. RSS 4 improved to Rs.115.50 (Rs 115) a kg, according to traders. The grade was quoted steady at Rs 114.50 (Rs 114.50) and Rs 111.50 (Rs 111.50) respectively, by the Rubber Board and dealers.
– Commodity Online
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