Natural rubber exports have registered a 49.6 per cent growth during the April-October period of the current financial year with a total shipment of 49,097 tonne. | |
| The surge in exports has been facilitated by a rise in production and lower domestic prices compared to those in the global markets. |
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| According to the latest estimates of the Rubber Board, exports have touched 49,253 tonne as on November 6, closing in on the overall export target of 50,000 tonne for the current financial year. During the same period (April-October) last year, the exports were at 32,810 tonne. |
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| Lower domestic price tags compared with international prices have helped increase the exports from the country. Domestic prices were lower by Rs 10-15 a kg on an average as against the global prices. Traders estimate that the total exports may cross 65,000 tonne in 2006-07. |
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| As per the provisional estimates of the Rubber Board, total production has increased to 464,660 tonne in the first seven months of 2006-07, registering a growth of 10.1 per cent over the production of 422,090 tonne during the same period last year. |
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| The present trend in production signals a reasonable growth in annual production at 844,000 tonne, surpassing the target of 831,000 tonne, estimated Rubber Board sources. |
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| Favourable climate and active tapping in most of the rubber-producing areas of Kerala and Tamil Nadu have led to a rise in production. |
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| During the October-December period, the peak production season in the country, the output is estimated to be 282,500 tonne, reflecting an increase of 11,465 tonne over the output of 271,035 tonne in the same period of the previous year. |
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| Meanwhile, the price of benchmark grade RSS-4 dropped to Rs 89 a kg here on Wednesday from the previous day's price of Rs 89.50, signaling a seasonal fall in prices during November-January. Some dealers expect a price range of Rs 70-75 a kg by the end of 2006. |
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| The rubber consumption, meanwhile, has registered a rather slow progress at 473,900 tonne, rising by a mere 2.2 per cent. |
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| According to the latest indications, the consumption may fail to touch the estimated 841,000 tonne, given the current average growth in consumption at 2 per cent as against the Rubber Board's estimated 5 per cent increase on an annualised basis. |
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| The increased use of synthetic rubber has seriously affected the consumption of natural rubber. According to a section of traders here, the annual consumption growth will be in the range of 1.5 to 2 per cent in the current year. |
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| Lower rubber offtake from the industry, especially from the non-tyre sector, has led to lower consumption. A good number of small and medium industries have closed down, owing to sharp rise in prices earlier, impacting consumption. |
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