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marketing system of rubber

search wordsToday (2-7-07) I got a search word on the Dashboard of my blog was “marketing system of rubber”. I have to publish an answer for it.

 

Ribbed Smoked Sheets

Mainly marketing of rubber as sheets from RSS 1x to RSS 5 excluding ungraded. On International level a green book with sample of sheets with description is approved for grading. Unfortunately the farmers are unknown about it, because non of the licensed dealer in India is not displaying it. The State Govts. have no control or suggestion on grading. They will say that grading grievances are under the control of Indian Rubber Board. As a farmer I can say that grading is under the control of big dealers according to their will. A single dealer will sell same type of sheets on various grades to various consumers/manufacturers. That means a type of sheet will sell to Ceat Tyres as RSS 4 and the same type will sell to Appolo Tyres as RSS 2 (this is an example). The purchased grade and selling grades are different according to their opinion. Rubber Board was in a suggestion that International Grade RSS 3 is equivalent to Domestic RSS 4. How it is possible when the green book is the same?

 

Now the technology is developed and a scanner or a technical grading system can be introduced to buy and sell on same grade with a reasonable margin. A technical grading cell is available with Rubber Research Institute and they will not intervene the system of grading adopted by dealers and manufacturers. Smuggling rubber to other States are an income for the checking squad. Many items in the market have to sell by displaying sample and price, but sample sheets and price for Natural Rubber is not displaying at purchasing center. The exploitation on grading is a main problem on this sector.

Weekly Price

Price of RSS 1 to RSS 3 is uniform rate which is not available on daily price.

The system of marketing is an understanding with dealer and manufacturer. If the price for RSS 4 today at Domestic market is Rs 87.50 the dealer will take an order from a manufacturer for a load of 16 Tonnes. The dealer have to dispose it within 7 days at that rate by avoiding market fluctuations. If the price can bring down to purchase from the public at lower rate and the same can be sold at Rs. 87.50 with more profits. If the price goes up then the loss will be suffered by the dealer. The joint game on price with the co-operation of bulk dealers and manufacturers is the reason for high volatility of Rubber price. If a new dealer comes with transparency can’t survive between them.

Latex

Prices of Natural RubberLatex is purchasing from farmers below the rate of RSS 5 for 100% dry rubber content. Field Latex will mix with ammonia to protect from coagulation and will be converted as 60% dry rubber and 40% other items in it. Daily price of latex is published by the Indian Rubber Board and Malaysian Rubber Board approximately as a lowest price. The monthly average of 60% drc latex are available far higher than RSS 1x both on International and Domestic. The purchased rate of field latex and the final rate of 60% drc latex is higher than 1.5 times. For eg. average daily price of 60% drc latex for April 2007 was Rs. 6589/- per quintal at Domestic market and price published for the same in monthly rubber statistical news as Rs. 10983/-.Latex price 60%drc

For more details Visit this excel page.

Price of Natural Rubber

All prices of various grades of Natural Rubber published by the media are not available in any of the sites related with Indian Rubber Board. Rubber Board is publishing 4 items only (RSS 4 & 5, ISNR 20 and Latex 60% drc) as daily prices. One of the biggest tyre manufacturer in India publishing on their own group’s news paper as “vyaaparivila” (dealers price) to control the whole small scale dealers in Kerala. Actually the prices of various grades have to be collected by the Rubber Board and it must be published in all dailies. For agricultural commodities daily prices are publishing by an agency (ബ്യൂറോ ഓഫ്‌ എക്കണോമിക്സ്‌ ആന്‍ഡ്‌ സ്റ്റാറ്റിസ്റ്റിക്സ്‌) under the control of Govt of Kerala. If they also collecting prices from these news papers then it is a wrong way to harass farmers.

1 comment to marketing system of rubber

  • Alfredo Zebua

    Dear Sir,

    I’m being in research about natural rubber for achived my degree at
    Bogor Agricultural University. May I get series data monthly average
    Natural rubber Price in India (RSS1 and TSR 20) as attached file

    Thanks

    Alfredo Zebua