Contact Me

 LinkedinFacebookFacebookFlickrTwitterSlideshare Google Buzz



Is any need to Import from Thailand on less Import duty?

Few details from April 96

Year Stock Balance Production Import Consumpt- ion Export
96-97 103190 549425 19770 561765 1598
97-98 107310 583830 32070 571820 1415
98-99 147300 605045 29534 591545 1840
99-00 187965 622265 20213 628110 5989
00-01 192570 630405 8970 631475 13356
01-02 183900 631400 49769 638210 6995
02-03 193070 649435 26217 695425 55311
03-04 117995 711650 44199 719600 75905
04-05 78340 749665 72835 755405 46150
05-06 106200 802625 45285 801110 73830
06-07 93020 852895 88040 820305 56545

The Stock balance of Dec 2006 was 140920 Tonnes & encouraging exports ( Hindubusinessline ). Within a year flectuating market prices will allow export and import under the pretext of deficiency and surplus in India. The situations are creating for unnecessary import and export below market prices within producing Countries. The suply and demand are approxmately equal in India. Now the Ministry of Industry and Commerce Minister is signing an agriment with Thailand to import rubber to India with less import duty. It may be sined on July this year. This news published in mathrubhumi (Malayalam) daily on 12 April 2007.

The availability of Natural rubber for the year 2006-07 for each month with a missing.

Month Opening Stock Production Import Missing Availability
April 93020 54555 3439 -1107 152121
May 82240 56500 6511 -705 145956
June 74150 57610 6437 -649 138846
July 63360 65500 5011 -410 134281
August 57180 74495 2856 -540 135071
September 53530 73550 622 -438 128140
October 52410 82970 1307 -279 136966
November 65620 95525 5653 -236 167034
December 95590 101680 12517 -281 210068
January 140920 96450 9876 -458 247704
February 177780 47560 17736 51 243025
March 173590 42605 15799 -5378 237372

2 comments to Is any need to Import from Thailand on less Import duty?

  • Ramachandran

    Dear Mr. Nair,

    I am amazed the details you have collected on Natural rubber and my sincere appreciation for the same.

    Imports of any material happens due to three considerations :

    Availability and

    In the case of Natural Rubber there is always a tendency to throttle availability to achieve maximum price. A good deal of stockists have emerged in the market since 2003 (when the futures market started) and they comfortably take positions at 10% of the value of the goods.

    The result of this is well known. During the peak production time , the futures market quoted Rs. 118 per kg while physical market was at Rs. 95 to Rs. 98 per kg. There were no sellers in physical market at these levels of prices also.

    This has led to all consumers to imports (which were cheaper at that time) only to be sure of the availability during the lean season. As imports arrived the demand went down which lead to lowering of prices. Many good dealers are trapped having high priced stocks unable to sell at lower levels of prices.

    Now again the same thing is happening in May 2007. Looking at international market fresh players have entered in the indian futures market since 16.5.07 jacking up the futures prices higher than physical prices. Selling does not happen even if the consumer offers a prices of Rs. 86 per kg. May be a repetition of Oct- Dec 2006 again.

    Elsewhere in the world market for playing in futures market the margin money is much higher than 10% and there is a regulatory body which declared the open positions and have limits for every player. Here we do not have any such provisions and you are aware of what happened on 05.03.07 in the futures market – on a single day the futures market crashed by Rs. 9 per kg , pulling the physical market down. Lot of dealers lost good amount of money in this.

    I feel if the futures market for rubber is stopped and if rubber board ensures material to the consumers at the reasonable prices all times the market can function smoothly.



  • Thank you Mr. Ramachandran for your valuable response. Rubber Board will not help any manufacturer or farmer because they are under the control of somebody. That is why they are publishing mathematical errors for a flectuating market. Here Hon. Chiefminister Mayavathi is an example to overcome these problems. She accepted the brahmins of UP for the participation to share rule without any rivalary. In that way farmers and manufacturers have to join togather to avoid the irregularities in market. If any of the manufacturer in India is willing to join with farmers I can take the initiative to provide farmers for them. The “Quality Rubber Marketing Society” then will rise up to fulfil the requirement of that manufacturer with the support of Dealer Licence No. D-1418862.
    We can encourage the farmers to protect Rubber trees with increasing productivity, to maintain quality sheets (Air dried or smoked within 24 hrs), implimenting technical grading system to purchase and sell in the same grade, identification of farmers through rubber sheets etc.
    Thank you once again.