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Beware of the games with Natural Rubber

The month end stock of natural rubber as on 31st January 2007 was 177780 Tonnes. The balance stock increased due to the higher price of domestic than International from October 2006 to January 2007. The production in February and march will be low due to seasonal leaf fall and hot summer. The Chairman of the Rubber Board encouraging the exporters for exporting to help farmers on one side and on other side Minister of Commerce and Industry says that the availability of rubber in India is not sufficient to fulfill the requirement. The minister was in a mood to sign an agreement to import on less import duty from Thailand. At the same time importing on zero percent import duty through advance licence.

Links of monthly details are available on rubber statistics for the year 2006-07 and are as follows. June 2006 provides the details of April 06.

April May June July August September October November December January February March

The excel worksheets supply and demand tells us that when the production goes up and month end stock with manufacturers will come down and import goes up. 40 or 50 big manufacturers can take up a decision to play this game against farmers and small scale industries. Missing quantity is provided by the statistics department to help them for a fluctuating price. The export from India will reduce the International price at the time of low production.

In a situation of higher prices in Indian market than International market from October 06 to January 07 it is impossible to have above 62000 Tonnes as high month end stock with farmers at the end of January 2007.

Monthend stock Jan 2007

What a wonderful growth

from Aug 2006?

Monthend stock Aug 2006

The stock with Dealers, Processors, and Manufacturers are provided to Rubber Board from their monthly reports like Form H, L etc. Farmers are not submitting any statement to Rubber Board about the stock with them.

More news about Export & Import in hindubusinessline.

`Favourable climate for rubber exports’

Global rubber prices, ruling higher than domestic rates, offer a favourable climate for exports, recommended the meeting of exporters convened by the Rubber Board. Major exporters, cooperative societies, Rubber Mark, representatives of companies under the Rubber Board were among those who participated in the meeting.

Domestic rubber prices shot up above international levels during the peak production period and declined during the low production season against normal practices.

The production was 33,000 tonnes in excess of the actual requirement, while imports reached a record level of 85,000 tonnes. It is believed that factors apart from supply and demand created problems in the market.

Remarks: These above mentioned exporters are not interested to bring more profits. A large amount share of profit will come to the Govt. treasury if there is any transperency. These exporters are resposible for this type of “domestic rubber prices shot up above international levels during the peak production period and declined during the low production season against normal practices”. This type of low price export will help them to make irregularities or able to aquire personel benifits. A transperency required on the value, date of export, type and quantity must be published periodically so that farmers can confirm that they are not cheated. The import up to Jan 31st was 54284 Tonnes and 30000 Tonnes (imports reached a record level of 85,000 tonnes) imported in Feb and Mar 2007 when the International price was higher than domestic price. The economic loss to the Nation is very high through these export and imports.

Visit : An interesting post from Thailand

Key words: Rubber OR Export OR Import OR India

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