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Reason for the price fall of natural rubber


The storage of buffer stock up to 5 lakh Tonnes on Natural Rubber by Thailand was the main reason for a great fall on price. The duty paid import to India at lower price than domestic with out anti-dumping duty is another reason. The duty paid import is for the consumption in India which will reduce the demand. Thus the imbalance of supply and demand will lead to another price fall. For profitable import the importers are powerful to hike the Domestic price above International is one more reason. It will destroy Indian manufacturers who are purchasing from domestic market with VAT. Above all the agreements signed with neighboring Countries permits import raw material for tyre manufacturers on Nil Duty. Finished products also permitted to import on Nil Duty. Thus the import of finished products are five times greater than the export of finished products. The manufacturers are capable to get support from the Center to implement anti-dumping duty on imported tyres tyres which is cheaper than domestic tyres. Growers are not capable to submit requests to Centre to implement anti-dumping duty on low priced import of raw rubber. The Statistics published by Indian Rubber Board with mathematical error with a reduced figure of balance stock on each month from 1st April 2010 till now. The old aged visual grading system permits the dealers for grading exploitation. They can purchase at lower grade and price for the sale at higher grade and price for more profits to overcome the loss on price fluctuations.

Details of Export, Import and missing value as follows