The Hindu Business Line : Latex producers urged to curb output

Coonoor, Aug. 20 The Association of Latex Producers of India (ALP) has cautioned its members against excess production in the coming months to protect themselves from a glut-induced price crash.

The warning has come despite the production falling last month because of its contention that the consumption is weakening.

In July, production was curtailed up to 75 per cent of normalcy because of rains which disrupted the tapping of the rubber trees.

But, the consumption remained negative. The production fall helped to ease the stocks and that’s why a slight improvement in price was noticed, the ALP has informed its members.

Consumption

“But, producers are cautioned against excess production as the domestic consumption continues to be depressed. With the weather improving, field latex production is moving to peak period.

With no chance of any export, indications are that excess supplies would remain in the market in the next five months. So, producers should be cautious to prevent a market collapse,” the ALP has warned.

Stock pile up

The current fiscal opened with an increased stock of 15,690 tonnes of latex – some four thousand tonnes more than last year. Production fell to 86,780 tonnes from 90,950 tonnes. Volume rose to 76,190 tonnes from 74, 670 tonnes.

As the domestic prices were higher, producers showed more interest to sell the latex in the home market.

Field latex is centrifuged with more than 60 per cent dry rubber content and so is called 60% latex in the market. It is used in the manufacture of certain products such as condoms, gloves, balloons.

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