NR output to rise 7.5 %

Natural rubber output in the country is likely to be around 893,000 tonnes in the 2010-11 season, up 7.5 per cent over last year, on account of favourable weather and good harvest from key growing regions.

The domestic consumption of rubber is also witnessing an upward trend in recent time and is expected to maintain the momentum during this crop year.“Domestic consumption is expected to be in the range of 978,000 tonnes, a rise of five per cent over the previous year,” Toms Joseph, economist, Rubber Board said at the annual convention of United Planters’ Association of Southern India (Upasi) here. In the wake of higher domestic consumption, import of rubber is also expected to see a rising trend.

“Earlier estimate of 70,000 tonnes of import is likely to see an upward revision due to higher domestic demand,” another Rubber Board official said. He said the prices would remain at this level in the near term. According to the Rubber Board, global economic recovery, high growth projection in Asia, erratic weather in major producing regions is expected to support prices in the future. Further, large scale replanting, low level of inventories and stable currency would hold prices at the current level. However, appreciation of yuan and weakening of dollar may put downward pressure on the pricing front.