The Hindu Business Line : Rubber output may top 8.30 lakh t this fiscal

The scenario
Availability is likely to be constrained in the coming months.
Tyre industry will need about 70,000 tonnes every month.
Tyre makers planning to import 20,000 tonnes during April-September.

Kochi , April 19

The Rubber Board has forecast that the country's natural rubber production will top 8.30 lakh tonnes in the current fiscal, but consuming industries such as tyre makers are apprehensive that even this growth will not ensure easy availability of the commodity during the year.

The board has projected an annual growth of 3.5 per cent in production during 2006-07 to 8.31 lakh tonnes.

Consumption is expected to grow by five per cent to 8.41 lakh tonnes.

7.1% growth

During 2005-06, production was 8.03 lakh tonnes, clocking a better-than-expected 7.1 per cent growth over the previous year as high prices induced farmers to vigorous tapping.

Consumption during the year was pegged at 8.01 lakh tonnes (6.1 per cent growth). This was the first time since 1999-2000 when the country's production of natural rubber exceeded consumption, a top Rubber Board official said.

Closing stock

Closing stock by the end of March was 93,000 tonnes, according to the board. However, taking into account the opening stock of 2005-06 at 1.06 lakh tonnes, imports of 44,672 tonnes and exports of 69,446 tonnes during the year, the closing stock stands a shade over 83,000 tonnes.

The official said the difference in closing stock calculated is because the board took into account the wet weight of latex exported, while the closing stock of the previous year was calculated on the basis of its dry weight.

EXPORT, IMPORT

For the current year, the board expects the closing stock by March 2007 to be only around 78,000 tonnes.

Exports are projected at 50,000 tonnes and imports at 45,000 tonnes.

Depleting stock

Natural rubber consuming industries are of the view that despite the anticipated production growth, availability of the commodity is likely to be constrained in the coming months as it has been in recent times.

"For us this growth rates hardly matter. What really matter for us is the availability of rubber and stocks at the end of the year," a tyre industry official said. "The stocks are going on depleting."

He said in the past average stocks would have lasted for two months consumption, but now it was enough for just about a month's usage. The industry will need about 70,000 tonnes of natural rubber a month in this year.

Tyre industry accounts for more than half of this.

Change in import plans

Faced with a possible shortage in the market, tyre makers are planning to import about 20,000 tonnes of rubber during April-September this year.

"We had planned for an import of 25,000 tonnes. But now we have changed that since this is a costly proposition. We are planning to import only because we fear that our production will be otherwise affected due to the shortage of rubber in the market," the official said.

The Rubber Board expects the tyre sector to grow by 7.5 per cent and non-tyre sector by 2.2 per cent in the current year.

More Stories on : Rubber | Exports & Imports

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
TNAU invention gets IPR patent

Farmers bear the cross

Areca coop body to market other produce too

Rubber output may top 8.30 lakh t this fiscal

Rubber prices rule firm

South tea sector gearing up to host Pak team

Rising & falling

Silver rises sharply; gold improves

IOB sells 36 kg gold on launch day

Nabard hikes AP credit support

Edible oils suffer setback

In dire straits