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Vipin V. Nair

Exports in January were 9,000-12,000 tonnes, taking the total exports this fiscal to 52,000-55,000 tonnes.

Kochi , Feb 7

RUBBER exports have surged by 15 to 20 per cent to an estimated 52,000 to 55,000 tonnes during April-January this fiscal, compared with total exports last year, helped by widening difference between international and domestic prices.

Rubber industry sources say that exports in January were ,000 to 12,000 tonnes, taking the total exports this financial year to 52,000 to 55,000 tonnes. Rubber Board statistics is yet to be made available.

China continues to be a major buyer of Indian rubber, followed by Malaysia.

The benchmark ribbed smoked sheet (RSS)-4 grade on Tuesday traded at Rs 83.50 for a kg here, carrying on the present bull run in the market which saw rubber prices rocketing record levels.

However, international rubber prices are still higher than the domestic prices, encouraging exporters. The matching RSS-3 grade in Bangkok is ruling at Rs 93.72 for a kg, giving exporters a significant margin.

The Rubber Board recently scaled up its export projection to 45,000 tonnes for the fiscal, from the orginal target of 40,000 tonnes. Rubber Board statistics till December 2005 show 43,875 tonnes export.

During 2004-05, India exported 46,169 tonnes of natural rubber.

Exports have picked up this year without any incentive from the Government. In the past years, the Government gave a subsidy of Rs 3.50 for sheet rubber and Rs 5 for block rubber, which was halved for the fiscal 2004-05, before being discontinued this fiscal.

"I would say that the exports will go up to 60,000 for the fiscal," a trader said. "Everyday there are enquiries and orders... " he said.

The main demand is for sheet rubber, followed by block rubber. Scrap rubber also had some demand, the sources said.

Apart from soaring international prices, the jump in exports is one reason that keeps pushing up domestic prices. Exporters are even offering a small premium to local prices to get rubber, the sources said.

Availability of rubber is still low in the market as growers are enthused to hold back their produce as they wait for domestic prices to match international rates.

More Stories on : Rubber | Exports & Imports

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