Imports of natural rubber plunged by 11.7% in February

The natural rubber imports scenario is not active as it dipped by 11.7% in February to 27,280 tonnes from a year ago The Dollar Business Bureau

In February, the import of natural rubber fell by 11.7% to 27,280 tonnes

The situation of natural rubber imports is sluggish, which plunged by 11.7% in February to 27,280 tonnes from a year ago and India imports rubber mainly from Indonesia, Vietnam and Thailand. The rubber production is down as consumption levels remained moderate during the month. “The sector of natural rubber is going through a tough stage of very low prices, which will have serious implications for the future of the entire rubber industry value chain,” the Rubber Board said in a statement. However, “continued production of natural rubber is critical for protecting the income of the rubber farmers and ensuring availability of natural rubber for rubber product manufacturing,” it said. According to the Board, the major challenges to the country’s current rubber scenarios are prices, small land holdings, gap in technology circulation, challenges in the marketing chain, rigorous R&D and climate change. In recent times, over-supply of rubber has led to lower prices. The government has been taking several steps to make it better, but it may take a couple of years to ensure sustainable prices to the farmers. The Rubber Board stated that high quantities of rubber products imported, including tyres are often dumped. Reductions in tariff is another critical issue that the Govt has to address. “One of the main reasons for the declining competitiveness of non-tyre manufacturing sector has been lower scale of operation and lack of technological advancement,” it said. In February, the production of natural rubber dropped by 12% to 37,000 tonnes, whereas consumption relieved 0.6% to 82,500 tonnes.

March 17, 2016 | 03:00pm IST

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The Dollar Business Bureau - Mar 17, 2016 09:53 IST

Imports of natural rubber plunged by 11.7% in February

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