Rubber exports jump on low local prices
Exports of natural rubber have seen a major growth in the first six months of ’06. According to the January-June ’06 figures, rubber exports stood at 41,731 tonnes.
By S Sanandakumar, TNN |
KOCHI: Exports of natural rubber have seen a major growth in the first six months of ’06. According to the January-June ’06 figures, rubber exports stood at 41,731 tonnes. Low domestic prices have fuelled natural rubber exports. This trend of lower domestic price and higher international prices started in June ’05 and is still continuing.
Compared with the January-June period of ’05, the natural rubber exports have registered a 533% increase. The exports during April-June ’05 stood at 6,594 tonnes. On the other hand, import of natural rubber stood at 20,726 tonnes during January-June ’06.
Compared to this the import stood at 42,469 tonnes during the same period last year. Exports were lower and imports were higher last year due to the higher domestic price compared with the international price. The domestic price continued to be higher till May last year when it stood at Rs 62.14 per kg for RSS-4, while the international price stood at Rs 58.50 per kg for RSS-3 at Bangkok.
In June ’05, the Indian prices were lower compared to the international price. The price stood at Rs 61.73 per kg in Kottayam for RSS-4, while it was Rs 63.84 per kg for RSS-3 at Bangkok. One year later, in June ’06 the price became Rs 106.92 per kg for RSS-4 at Kottayam, while it was 124.84 per kg for RSS-3 at Bangkok.
Higher consumption by China and India and tight supply conditions raised the price of rubber internationally. When the prices rose in the domestic market the growers benefited.
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