Contact Me

 LinkedinFacebookFacebookFlickrTwitterSlideshare Google Buzz



Reason for Surplus & shortages of Raw Rubber

The main reason for the surplus stock of natural rubber in the market with the support of Indian Rubber Board visible in the previous Indian Rubber Statistics. From 1st April 1996 a +Ve missing shown in statistics up to 31st March 2002 was a quantity of 38398 Tonnes above the published figures which is adjusted through shared annual missing. The visible high market stock  was a reason for lower prices. It happened due to the application of stimulant (Ethephon) recommended by the Rubber Board to reduce production cost and to increase production through a tapping system with an interval of seven days between two tapping days. The farmers were happy by increasing tripping rate and availability of high production. But the annual income to the farmers decreased through lower prices for a long period. As a result of high production ‘brown bast’ occurred in many rubber trees after three years of continues application. The figures published as month end stock was a manipulated one. View the details from April 1996 to March 2008 as HTML.

From April 2002 onwards the -Ve missing  was 36228 Tonnes up to March 2008,  because the expected out put is not visible in the production of  raw rubber. The reason for the shortage is due to the earlier application of stimulant (Ethephon). Many of the Rubber Trees are diseased ‘brown bast’ and production went to lower level. The effect of climatic changes due to Global warming and fever for work force also became a reason for reduced production for the year 2007-08. To control the price below International market price Rubber Board published month end stock higher than actual stock through -Ve missing. In the monthly rubber statistics published by Rubber Board with figures for market price to 60% drc latex for dry rubber content, but daily prices, stock and export are calculated with 40% content other than rubber to show high productivity and to support exporters. Export and import wise-versa is another game. Maximum import are carried out under 0% import duty and export are with an exemption of cess and Value Added Tax. These export and import are a reason for economic loss to Central and State Govts.

The latest updates available in

The missing details and analysis of Indian Rubber Statistics available as & Microsoft Excel worksheets

Comments are closed.