Indian natural rubber exports to touch 5000 tonnes in 2016-17

KOCHI: Rubber Board expects the natural rubber (NR) exports from India to touch 5000 tonnes this fiscal with international prices ruling over the domestic prices.

Owing to unattractive relative prices, India’s exports have been negligible since 2013-14. In 2015-16, the total NR exports from the country were 865 tonnes. This fiscal, from April to October, the exports were 650 tonnes. However, shipments started gaining momentum from the second half of November with the spurt in international prices.

The board is keen on capitalising on the jump in the international natural rubber prices by promoting the export of NR from India hoping that it would raise domestic prices to the world market levels. It has been promoting the brand Indian Natural Rubber for exports, by which the quality of rubber exported from the country is certified by the Board. Eighty percent of the NR export done so far this fiscal was under this brand.

The price of natural rubber (NR) in India had been ruling high over international market prices since December 2013. This price gap between the Indian and international prices came down in the third quarter of 2016. From the second week of November 2016, the international prices of NR shot up and is currently hovering at higher levels compared to Indian prices. The spurt in international rubber price was due to the increased demand for rubber from China, upward trend in crude oil price, appreciation of US dollar etc.