Indian Rubber Board does not expect price volatility

ERJ staff report (DS)

Kottayam, Kerala, India - Rubber Board Chairman Smt. Sheela Thomas has said that there would not be much fluctuation in the natural rubber (NR) price. She was delivering the presidential address in the 167th meeting of the Rubber Board held at Rubber Research Institute of India yesterday (2 February).

Smt Thomas said, Indian domestic production of NR from April to December 2011 increased by 4.3 percent as compared to the same period in the previous year. NR consumption during April-December 2011 increased only by 1.2 percent as compared to the corresponding period in the previous year. NR consumption in tyre sector increased by 5.7 percent whereas NR consumption in non-tyre sector declined by 6.3 percent. Monthly NR consumption, which remained below that of the previous year from August to October, recovered from November 2011. According to Automotive Tyre Manufacturers Association (ATMA), tyre production and export increased by 7 percent and 25 percent respectively during April-November 2011 over the same period in the last year, she added. 

Production and consumption of NR for the year 2011-12 are projected at 902,000 tonnes and 966,000 tonnes respectively. Import and export of NR for 2011-12 are projected at 170,000 tonnes and 30,000 tonnes respectively. Based on the above projections, the carryover stock at the end of March 2012 is projected at 230000 tonnes.

Production and consumption of NR in 2012-13 are projected at 942,000 tonnes and 1006,000 tonnes respectively. Thus the production-consumption balance indicates a deficit of 64,000 tonnes. However, there will not be any shortage of NR in the domestic market in 2012-13, as the projected opening stock of NR in April 2012 is 230,000 tonnes and as the rubber consuming industry has entitlement to import more than 100,000 tonnes of NR through duty free channels.

This is an external link and should open in a new window. If the window does not appear, please check your pop-up blocking software. ERJ is not responsible for the content of external sites.
Press release from Indian Rubber Board