The Hindu Business Line : `Favourable climate for rubber exports'

Kottayam April 26 Global rubber prices, ruling higher than domestic rates, offer a favourable climate for exports, recommended the meeting of exporters convened by the Rubber Board. Major exporters, cooperative societies, Rubber Mark, representatives of companies under the Rubber Board were among those who participated in the meeting.

Mr Viju Chacko, Director of Finance, who presided over the meeting, presented an analysis of the current situation and said the developments last year were entirely different from other times in the past. Domestic rubber prices shot up above international levels during the peak production period and declined during the low production season against normal practices.Since prices picked up during the peak season, major tyre companies imported rubber to overcome the shortage during the lean months. These large-scale imports led to the price fall later.

Excess output

The production was 33,000 tonnes in excess of the actual requirement, while imports reached a record level of 85,000 tonnes. It is believed that factors apart from supply and demand created problems in the market.

Exports should be promoted to reduce the excess stock in the market, the meeting assessed.

The exporters are in difficulty due to delays over VAT payment and the Rubber Board should intervene, the meeting demanded. Raw material quality should be improved and steps, including branding, taken to compete in the international market.

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