The Hindu Business Line : Madurai rubber units hike product prices

Madurai, June 8 Slipping into doldrums due to an increase in raw material costs, the emerging rubber hub in Madurai, Rubber Park (Madurai) Ltd., a consortium of rubber product manufacturers here, has announced a hike in the prices of finished products, effective July 1.

While the raise in the prices of latex rubber products would be 20 per cent, for other non-latex rubber products, the increase would be by 15 per cent, said Mr M. Chandrasekaran, Chairman of the park.

There are around 100 companies engaged in rubber products manufacturing in Madurai, providing employment to more than 10,000 people with an estimated turn over of over Rs 2,000 crore per annum, with exports constituting more than 50 per cent. From ‘V’ belts to conveyor belts, baloons to rubber brands, oil seals to play balls are manufactured. “The vibrant sector has been affected severely in the last few months due to abnormal increase in prices of all its raw materials, particularly, raw rubber that makes up 60% of the cost of any rubber product”, he said while addressing a press meet here.

The raw rubber that was selling just three months back at Rs 100 a kg touched an all-time high of Rs 135 a kg. during the last week of May. The prices of carbon black and synthetic rubber, other raw materials used in the production of rubber products have also gone up. Adding fuel to the fire, the recent price hike in petroleum products has dealt a big blow, forcing certain units to close the shutters. “All these days we have been absorbing the price hike with great difficulties and the time has for us to pass on the burden”, he said.

While calling upon the Central and State Governments to bail out the rubber units from the present crisis, he suggested a ban on natural rubber on ‘Online trading’ as the prices quoted therein set the benchmark prices for the market, a ban on export of raw rubber, exemption of intermediaries in rubber from custom duty and a reduction or a waiver in excise duty and VAT on finished rubber products.

To a question on the role of SIDCO (Small Industries Development Corporation) that used to procure and distribute raw materials to the manufacturers, the chairman replied that the initiative was yet to come.

More Stories on : Rubber | Tamil Nadu

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

Stories in this Section
Build a dream, not a nightmare

Apollo Hospitals plans liver facility in Kolkata

Asian stock markets brace for impact of spike in crude prices

Madurai rubber units hike product prices

VAT panel meeting may discuss sales tax compensation issues

Cost of direct tax collection at all-time low

NIIT partners Maharashtra, Bihar

Gold to test the resistance levels

New office-bearers for FICCI FLO

A robot for every need

‘Tax sops needed to lure funds into mining’

Women in Andhra Pradesh better off, says report

Ayurvedic drug makers oppose Govt move to test products for exports