Low prices, heat wave hit rubber output in Apr-May

The rubber production in April and May this year has been severely hit by consistent low prices in local markets and a long heat wave.

The cumulative production of April and May has dropped 10.6 per cent to 93,000 tonnes, compared to 104,000 tonnes in the same period of last year. The latest data of the rubber board said production for May decreased 9.4 per cent to 48,000 tonnes, compared to 53,000 tonnes during the month last year. However, there has been no fall in consumption, indicating that the gap with production will occur this year, too - for the fourth consecutive year. Consumption during May 2015 increased 2.4 per cent to 84,000 tonnes. Last year, it was 82,000 tonnes for the same month.

According to the data, import is picking up in spite of a five per cent hike in import duty. During April and May 72,364 tonnes were brought into the country while this was 63,842 tonnes in the same months of 2014.