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| Natural rubber imports rise 118% in April-December |
| George Joseph / Kochi Jan 12, 2010, 00:01 IST |
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Natural rubber (NR) imports during April-December period of the current financial year increased 118 per cent to touch 138,486 tonnes compared with 63,452 tonnes in the same period last year. However, the sharp rise in imports occured only during the first half of the current financial year, as only 4,890 tonnes were added in December, according to the data released by the Rubber Board.
Only 20,588 tonnes were added in the third quarter of the current financial year while this was 44,093 tonnes in the first quarter and in second quarter, 73,805 tonnes were imported. The monthly average imports in April-September (Q1 and Q2) were 19,650 tonnes while the average imports in October-December were only 6,860 tonnes, showing that imports were low since October.
According to the trend in the import of rubber in April-September, it was widely expected that the import might cross 180,000 tonnes this year. Some experts even predicted an import of 200,000 tonnes. This would have been the all-time high import of NR.
In 2008-09, total imports were 79,927 tonnes. But the current slow pace indicates that the total imports might land up between 150,000 and 160,000 tonnes. The sea change in imports happened because of the change in prices in local and international markets. During the first half of the current financial year, prices in India were higher by Rs 12-15 a kg which tempted leading companies to buy from overseas. The sharp increase in imports also helped to enhance the stock of NR in the country to around 250,000 tonnes according to the Rubber Board estimates.
The advantage of duty-free import quota was a major attraction to the industry, now imports through this route are almost over. Though the prices of rubber increased sharply the availability is still a serious concern to the industry. Even at a price of Rs 138 a kg for RSS-4 grade, market is experiencing serious shortage. So various industries including tyre industry that consumes around 45 per cent of NR production demanded duty-free import of rubber.
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