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Indian Rubber Board step out for reduced price

This is an image of news published in mathrubhumi Malayalam daily on “dhanakaryam” of 19-11-07. It states that Rubber Board showed the green flag to reduce the aim of exporting 70,000 Tonnes from India to 25,500 Tonnes and to increase import from 60,000 Tonnes to 80,000 Tonnes which is published at peak season from November to January. On 31st March 2007 stock with manufacturer was 70480 Tonnes, dealers/processors‍ 48975 Tonnes and with growers‍ 44075 Tonnes. The total stock was thus 16,3530 Tonnes which was capable to bring down the domestic price below International price up to November 2007. Now the aim of Rubber Board is to maintain month end stock as 18,6000 Tonnes against farmers to fetch a reasonable price to their produces.

Actually the average consumption is approximately nearer to 60,000 Tonnes only. From Nov to Jan the monthly production in India will be above one lakh Tonne. Supply is varying mainly due climatic changes. Import of rubber at a price of rupees 5 below per kg of the domestic rate was unwanted. Export of rubber was also done at a price below 50 percent of Domestic price which is evidently irregular.

DGFT (Director General Foreign Trade) was permitting or controlling Import, but now Rubber Board showed green flag for import. Exports were promoted by Rubber Board to help farmers to fetch a reasonable price and now restricting export. If supply and demand are closer with a small difference in quantity price will be steady or reasonable.

Even though the rubber prices were high during the previous years and the profits of tyre manufacturers for those years were on the increase.

Prices of rubber for the year 2006-07 as follows.

  • International RSS 3 : Rs. 9779/quintal
  • Domestic RSS 4 : Rs. 9204/quintal
  • Import Price : Rs. 8698/quintal
  • Export Price : Rs. 9085/quintal

How the following export can be done at the year 2006-07?

Quantity in Tonnes and price in ‘000 rupees.

Country Germany Belgium Turkey U.K U.S.A Spain
Qty 2658 2324 1751 1238 1567 1204
Value 179704 148944 103398 79527 125413 95540
Price/Kg 67.61 64.09 59.05 64.24 80.03 79.35

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