Natural rubber output down 14% in Dec

Natural rubber production dipped by 14 per cent to 96,200 tonnes in December last year, partially offsetting major increase in output in the first eight months of this financial year.

“The output of natural rubber in December declined to 96,200 tonnes from 111,730 tonnes a year ago due to decline in the prices following industrial recession. That apart, dry weather conditions contributed to the fall,” a senior Rubber Board official said. The production between April and December period, however, touched 669,080 tonnes, up eight per cent, from 620,060 tonnes tonnes in the same period the previous year.

Consumption, too, was down at 66,000 tonnes from 73,110 tonnes in December 2007.

“The demand decreased due to economic slowdown along with a 30 per cent rise in the import of cheaper Chinese tyres,” the official said. Domestic tyre manufacturers have cut down on production on recession fears, he added.

The overall consumption during April-december last year, however, was up at 659,665 tonnes, compared with 642,570 tonnes in the same period the previous year, mainly due to demand in the initial period of this financial year, he said.

Natural rubber prices at Kottayam, a major trading hub, slumped to Rs 6,650 a quintal yesterday from a peak of Rs 14,200 a quintal on August 28 last year.