Reason for the price fall of natural rubber

Rise and fall in prices of natural rubber

The WTO is an international organization for the formulation of international trade policies. The GATT was created on January 1, 1948 and became the World Trade Organization on January 1, 1995. In 1995 India signed the General Agreement on Tariff and Trade. In 1995-96, the required quantity of natural rubber was the production subtracted from the sum of Consumption and export which was 19685 tonnes. 51635 tonnes being imported with an additional Import of 31950 tonnes. For the first time in 1995-96, the closing stock was increased above one lakh Tonne to 103190 tonnes. Closing stock of previous year was 69550 tonnes, additional import of 31950 tonnes and a figure of 1690 tonnes was added to get higher closing stock. RSS 4 also fetched a higher price of Rs 5204/quintal than the previous years. 1995-96 onward the price was gradually reduced as 4901, 3580, 2994, 3099, 3036, 3228 respectively with an additional import of 160528 tonnes. Due to the price fall, in September 2001 the government had announced the minimum tariff for RSS 4 at Rs 34.05 per kg was implemented by the Rubber Board. In 1995-96, consumption was 525465 tonnes and production was 506910 tonnes and in 2001-02 the increased consumption was 638210 tonnes and production was 631400 tonnes. From 1995-96 to‍ 2001-02 the price deteriorated.

In 2002-03, the sum of consumption and export subtracted by production, the requirement was 101301 tonnes. With the import of 26217 tonnes the remaining 75084 tonnes didn’t got imported. In 2002-03 the closing stock was reduced to 117995 tonnes compared to the previous year which was 193070 tonnes. Next year the closing stock was again reduced to 85190 tonnes. From 2002-03 to 2010-11, the closing stock has been increased to 288300 tonnes by importing an additional import of 86517 tonnes; Price increase took place as 3919, 5040, 5571, 6699, 9204, 9085, 10112, 11498, 19003 respectively. In 2002-03, consumption was 695425 tonnes and production was 649435 tonnes and in 2010-11, consumption rose up to 947715 tonnes and production rose up to 861950 tonnes. From 2002-03 to 2010-11 there were attempts to control the increasing price.

The impact of additional import from 2011-12 onward has not finished even after the Corona. In 2011-12 the sum of consumption and export subtracted by production the requirement would be 87860 tonnes. An additional import of 126573 tonnes rose up to 214433 tonnes. If the closing stock of last year was 288300 tonnes along with additional import of 126573 tonnes and the total closing stock would be 414873 tonnes. But the Rubber Board vehemently reduced a figure of 178598 tonnes from the total closing stock and published it as 236275 tonnes. The additional import up to 2017-18 was 636055 tonnes and continued the reduced closing stock as 156429, 155345, 58218, 53094, 12193, 18478 respectively. Between 2011-12 to 2018-19 prices were 20805, 17682, 16602, 13257, 11306, 13549, 12980, 12595 rupees per quintal respectively, while consumption increased from 964415 tonnes to 1211940 tonnes and production decreased from 903700 tonnes to 651000 tonnes. In response to a query raised by Joy Abraham MP in Rajya Sabha in the year 2013-14, the response of Hon Commerce Minister Smt. Nirmala Seetharaman was that the estimated shortage was 207520 tonnes instead of 137520 tonnes. In order to rectify the 70000 tonnes error, a two-member Commission reduced the production from 884,000 tonnes to 774,000 tonnes. In 2013-14, the tappable area was 518100 hectares and the tapped area was 475200 hectares. In 2018-19 the increased tappable area was 640000 hectares and the reduced tapped area was 448000 hectares. In April 2019 Dr. K.N Raghavan IRS took over as Executive Director. Under his initiative Rubber Board corrected the arithmetical error in closing stock for the year 2018-19 by adding additional imports with Closing Stock to tally supply and demand. The production of 7.15 lakh tonnes approximately has been achieved with the adoption of untapped rubber plantations under the leadership of Rubber Board for the year 2019-20. Due to the fact on tally of both sides, import was reduced to 4.5 lakh tonnes approximately in 2019-20. In the meantime, a state government incentive @ 150 was introduced in 2015. Thus from 2016-17, there was a slight increase in production. The benefit goes to manufacturers at lower price. From 2011-12 onward, prices have been falling. At present Corona was able to increase its momentum.

In addition, a number of contracts have been signed by Govt of India to assist manufacturers. The Auto Tyre Manufacturers Association has announced lot of benefits are available. But it’s not available on their site right now.

From the above figures, it can be seen how the rubber board has helped to reduce the price of rubber to help the tyre makers.

Google translate with mistakes. Corrected by my Grand Daughter.

Arithmetical error to help whom?

Read More >>> ERROR

7th public grievance

Grievance DOCOM/E/2020/00010 dt 04-01-2020 submitted

Although six complaints have been lodged in the PGPortal, the issue has not been fully resolved. So the seventh complaint is filed. The irresponsible reply from Rubber Board is a public cheat.

Is it suitable reply to the Grievance?

I send an Email to [email protected], exedir <[email protected]> as follows.


My grievance filed in PGPortal was about the error % from 2011-12 to 2015-16. Unfortunately gave a reply for the year 2016-17 and 2017-18 with low error %.

I request you to agree the mistakes done by S and P department which was above allowable limit.

The reply received from Secretary below as PDF.

remedy for brown bast


Brown Bast in Rubber Trees Can be Cured

Brown bast is a common physiological disorder in Rubber Trees. A permanent solution to this grave problem has not been found yet anywhere in the World. In the early stages, a visible, milkless circular bast forms around the tapping area. When the tapping continues, new bast absorbs elements around the tapping area and hence it becomes more visible. So Brown bast is a sivere disease growing downward from the tapping area. Normally people used to tap the rubber trees one feet below the Tapping Pannel Dryness affected area and collect latex. But this is not a remedy for this. The number of Brown bast trees increases by severe tapping stimulating medicines and over use of chemical manures.
We cannot trace a single drop of milk, eventhough the affected trees has been cut deeply from top to bottom at tapped area by tapping knife. Such trees have milk above the tapping area and it doesn’t flow downwards because it can only flow upwards. The roots of the tree absorbs water and nutrients from the soil and it passes through Xylem Cells of Stem and reaches leaves. Through Photosynthesis leaves prepares stach (food for trees) and it passes through the Phloem cells above the Cambium. For the process, the nuetrient Magnesium which carries Phosphorus reaches the root and it helps the growth of roots. After the growth of roots, it is expected to form food storage that will extended up to the leaves from from the phloem. But in Brown bast affected trees, the stem (trunk) becomes thicker and the bark necrocis continues.
A diagram which shows the growth of stem and bark in a rubber tree in view of a farmer is given below.
The division of cork cambium leads to the formation of living cells. And more over the food storage in the Phelloderm (Milk Vessels) above phloem ensures the availability of Latex. The flow of latex is from downwards to upwards. For more information read the post in Malayalam “Secondary thickening in di-cot stem”. Under the post a video by Late DrThomas Varghees Former head of the department of Soil Scienc, Kerala Agricultural University, stating Borax as the remedy for Brown bast, which emhances the land of experiments using Borax sample since January 2010.
The micro nutrient Boron is the main incredient for the growth of milk vessels in brown bast affected area. I am fortunate to understand that the application of Borax, diluted in coconut oil after scraping dry bark can avoid Brown bast. Late DrThomas Varghees paved the way for my experiment. The nutrient Zinc can control the dripping of latex. But it causes brown bast. The dripping can be controlled by increasing Tapping interval.
The micronutrient Borax the remedy of brown bast is available in Amazon also. The treees with out brown bast can also be protected by applying 20 gram borax in one liter of Coconut oil using a brush on the new bark of the tree above tapping pannel after scraping dry bark (One inch width) with out droping latex. This will help the tree to protect its latex vessels and the growth of new bark also. Moreover it will prevent the growth of brown bast. It will also prevent the “Bark Island” which may probably form near the starting point of tapping. Borax also helps by giving the nutrients which can be lost during tapping and for the growth of new bark. Above all it is a remedy for brown bast. When it is applies on one part of the bark, it reaches the rest of the tree and it gives full protection to the tree, which is visible.
The Borax mixture (20 gram + 1 Kg of Coconut oil) can apply 6 inch width in trees below 10 years. Make sure that it should be applied in affected trees after scraping the dry bark below the starting point of tapping. Even though the latex vessels form within one week, it is better to start tapping after one Month. It is better to give gap between tapping days to ensure the availability of lattex above 30 DRC. The yielding capacity and prosperity can be maintained with out culling down the old treees and re-planting new ones. Healthy trees can produce more latex with high DRC. If humps forms on the earlier cutting part, it can be removed without losing latex before applying the borax mixture. Tapping can be started on the opposite side of the tree.
These are the findings of a Small Scale Rubber Grower. Stimulant like Ethephon can be a reason for Brown bast. Since Borax is a micro nutrient, it can be used in minimum quantity. Protection of Phelloderm will enhance the growth of the Rubber Tree, from its roots to leaves.
The final decision and propagation should be taken by Indian Rubber Research Institute.

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