Rubber players cheer as exports likely to exceed 50,000 tonne
With Indian prices much lower than international levels, 43,113 tonne of natural rubber has already been exported up to March 1, industry reports say exports may cross 56,500 tonne that was achieved last year.
By NIDHI SHARMA, TNN |
MUMBAI: Natural rubber exports are likely to exceed the 50,000 tonne target set by the Rubber Board for 2007-08.
With Indian prices much lower than international levels, 43,113 tonne of natural rubber has already been exported up to March 1, industry reports say exports may cross 56,500 tonne that was achieved last year.
Padmakumar, a senior manager with Kochi-based rubber exporter AV Thomas and Company, said, since the difference between international and domestic prices is over Rs 10, India can easily export 60,000 tonne this year.
The price of the RSS4 variety of rubber is at Rs 101 per kg levels at Kottayam while the price of equivalent grade RSS-3 in Bangkok is at Rs 115 levels.
Similarly the price of SMR 20 at Kottayam is at Rs 98 per kg levels while the price of
similar variety in Malaysia is at Rs 108 levels.
Rubber prices were up in the futures market and at 5 pm the last traded price of March contract on NMCE was at Rs 101.68 per kg against previous close at Rs 100.69.
Kottayam-based rubber trader Bijosh P Thomas expects the prices to be between Rs 110-115 by mid-April due to local demand from tyre companies. Even the stocks at NMCE warehouse have declined from 14,000 tonne level in January to 7,000.
However the domestic tyre manufacturers are not happy with the exports as they feel it
is affecting the availability in market.
Automotive Tyre Manufacturers Association (ATMA) director general Rajiv Budhraja said growers and dealers are looking at the high prices on the Tokyo futures exchanges and they are not willing to offload their stocks.
There is no rubber available at these prices in the domestic market and exports are also set to cross the target, Mr Budhraja said. He said production is down compare to previous year while consumption has increased and even during peak season rubber is not available .
India is likely to produce 8.25 lakh tonne rubber as against 8.53 lakh tonne in previous year. The production is also down in other major producing countries like Thailand, Malaysia and Indonesia due to rains.
With Indian prices much lower than international levels, 43,113 tonne of natural rubber has already been exported up to March 1, industry reports say exports may cross 56,500 tonne that was achieved last year.
Padmakumar, a senior manager with Kochi-based rubber exporter AV Thomas and Company, said, since the difference between international and domestic prices is over Rs 10, India can easily export 60,000 tonne this year.
The price of the RSS4 variety of rubber is at Rs 101 per kg levels at Kottayam while the price of equivalent grade RSS-3 in Bangkok is at Rs 115 levels.
Similarly the price of SMR 20 at Kottayam is at Rs 98 per kg levels while the price of
similar variety in Malaysia is at Rs 108 levels.
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The Rubber Board had earlier projected exports of 70,000 tonne, which was lowered to 25,000 tonne as tapping was affected due to bad weather and viral fever that affected the tappers. However with improved conditions the Board revised the export target doubling it to 50,000 tonne.Rubber prices were up in the futures market and at 5 pm the last traded price of March contract on NMCE was at Rs 101.68 per kg against previous close at Rs 100.69.
Kottayam-based rubber trader Bijosh P Thomas expects the prices to be between Rs 110-115 by mid-April due to local demand from tyre companies. Even the stocks at NMCE warehouse have declined from 14,000 tonne level in January to 7,000.
However the domestic tyre manufacturers are not happy with the exports as they feel it
is affecting the availability in market.
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Automotive Tyre Manufacturers Association (ATMA) director general Rajiv Budhraja said growers and dealers are looking at the high prices on the Tokyo futures exchanges and they are not willing to offload their stocks.
There is no rubber available at these prices in the domestic market and exports are also set to cross the target, Mr Budhraja said. He said production is down compare to previous year while consumption has increased and even during peak season rubber is not available .
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India is likely to produce 8.25 lakh tonne rubber as against 8.53 lakh tonne in previous year. The production is also down in other major producing countries like Thailand, Malaysia and Indonesia due to rains.
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