The Hindu Business Line : `Efforts on to depress local rubber prices'

Kochi May 9 Imports of natural rubber into the country have shown an upsurge during the months when the domestic price was lower than that of the international price.

Total imports in 2006-07 were almost double at 89,535 tonnes from 45,285 tonnes the previous fiscal. However, "what surprises us is that almost half of the imports in last fiscal were during the months when the Indian prices were lower than the international price," said Mr J.K. Thomas, President, United Planters Association of Southern India (Upasi. This could be viewed as a deliberate attempt to depress the domestic prices.

Price Parity

Out of the total imports of 89,535 tonnes of rubber, 55,188 tonnes were during December 2006-March 2007. He said in February when Indian price for RSS IV was ruling at 97.57 a kg against the Malaysian price of Rs 106.05, 17,736 tonnes of natural rubber were imported. Similarly, in March the Indian price was lower by over Rs 10 a kg and yet the country imported 15,059 tonnes.

Upasi, Mr Thomas said, had strongly opposed import of rubber under any category so long as the domestic prices remained below the international market price. However, he said, imports to maintain international price parity was welcome.

International Prices

But, here the efforts had been to depress the Indian prices of natural rubber. The Indian rubber farmers are fully aware of the international market prices and hence they are holding back their produce for a parity price.

The industry should help the growers by buying from them at the prevailing international price as it would in turn help the economy to grow, he said.

Total output of natural rubber in 2006-07 was projected at 8.31 lakh tonnes compared with 8.02 lakh tonnes during the previous fiscal. As against the projected imports of 45,000 tonnes the arrivals from overseas have gone up to 89,535 tonnes.

There was an estimated carryover stock of 83,000 tonnes. Thus the total availability had gone up to 10.03 lakh tonnes in 2006-07. Consumption last fiscal was estimated at 8.41 lakh tonnes while the exports at 50,000 tonnes.

Given this scenario imports should not be allowed, he said adding so long as the Indian prices are below the international price.

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