Maintaining the declining trend in the natural rubber market, the price of benchmark grade RSS-4 on Monday dropped marginally to Rs 102.50 a kg from Rs 103 on Saturday. | |
| According to experts, the market is poised for another round of fall on account of various factors "" both global and domestic. Globally, the prices of natural rubber are going southward as economic recession looms large over the rubber industry. |
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| In Bangkok and Tokyo, rubber prices fell by Rs 7-10 a kg in recent weeks, hitting prices in India as well. Domestic prices, which touched Rs 106 a kg on March 11, dropped to Rs 103 on global cues last Saturday. |
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| Rubber production during March and April is expected to be good owing to heavy rainfall recently. Experts said there would be an extended round of tapping in the two months thanks to the showers. |
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| According to the Rubber Board, the country's rubber stock is expected to be around 180,000 tonnes by the end of this month. This, along with low demand, is set to pull rubber prices further down next month. |
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| Moreover, the industry is not in a hurry to stock natural rubber as they are waiting for the monsoon, the second best season for tapping, to arrive. |
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| Further, problems related to VAT (value-added tax) and CST (central sales tax) re-payment have also affected the business badly. |
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