The Hindu Business Line : Govt to continue monitoring rubber prices

THE Government today assured the Lok Sabha that it would continue to monitor the prices of natural rubber and intervene to take appropriate action in case of any crash in domestic prices.

In a statement in response to a calling attention motion on "situation arising out of fall in prices of rubber and steps taken by the Government thereto," the Commerce Minister, Mr Kamal Nath, said that the prices today are still higher than the corresponding prices of last year and continue to be "reasonably comfortable" at about Rs 55 per kg.

According to the statement, the steep rise in domestic prices recently was due to unusual weather conditions that prevailed in the rubber growing tracts of Kerala.

"There was lower production than anticipated in May-July 2004. Market arrivals have improved in August 2004."

Domestic prices are currently slightly lower than international prices.

The Minister also said that the port restrictions on the import of natural rubber, which had been restricted to two ports since December 2001 - Kolkata and Vishakapatnam - were removed on August 6.

"The prices of domestic natural rubber at the time of imposing the port restrictions were low.

"As the prices of natural rubber have since recovered and also taking into account the problems being faced by consumer industries, the Government has taken a decision to remove the port restrictions on import of natural rubber," the statement quoted the Minister as saying.