Plea to conduct independent study to estimate rubber stock situation

V Sajeev Kumar Kochi | Updated on March 12, 2018 Published on June 03, 2014

Natural rubber consumers have called upon the Rubber Board to conduct an independent study to estimate the stock situation considering the paucity of the commodity.

In a communication to the Rubber Board, the rubber consumers have stated that the domestic availability scenario has taken a turn for the worse in the ongoing financial year. In May, there has been practically no selling of rubber for most part of the month.

Non-availability of rubber in the markets in recent times has added to the woes of consumers, especially SMEs, who are already grappling a challenging environment, Niraj Thakkar, President of All India Rubber Industries Association (AIRIA), said.

In its communication, Automotive Tyre Manufacturers' Association (ATMA) stated that a virtual absence of rubber in local markets is playing havoc with the production schedules of tyre companies. While tyre companies have already contracted imports to meet the deficit, the local availability is much lower than anticipated during the current fiscal.

"If the present situation is any reflection, our added concern is about the likely scenario in the coming months. While tyre companies do anticipate domestic deficit for which imports are being and will continue to be contracted, certain baseline quantity is expected from the domestic market. In the absence of such arrivals, plant level manufacturing is at stake. Moreover, imports to meet the unanticipated shortfall in availability will take 2-3 months for arrival which will jeopardise the production planning by the tyre companies,'' Rajiv Budhraja, Director-General, ATMA, said.

Rubber consumers have also asked for revisiting the projected rubber scenario for FY 2014-15 in terms of production, consumption, imports and exports based on actual scenario as observed in the months of April and June.

Published on June 03, 2014
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