Rubber production drops 32.4% in July

Heavy rain during July had affected natural rubber production very badly as monthly output dropped 32.4%. In July, production was 46,000 tones as against 68,000 tones in last July,  according to Rubber Board data. This is the sharpest fall in monthly production during last four years.  

 

This also caused a fall of 18.6% in the cumulative output during April – July period of the current financial year. April – July figure stood at 196,000 tones as against 240,700 tones in the same period of last financial year. The sharp fall in production terribly upset the supply of the commodity, leading to an  increase in the prices. This is against the global trend where prices were depreciating, almost on a daily basis. In India, even at higher prices rubber is now a rare commodity as huge volumes are  not available in the market.

 

According to growers the dropping trend in production would continue in this month also as heavy rain obstructed tapping in most parts of Kerala. Rain and strong wind also caused serious damages to rubber plantations in some districts of the state. It also affected the quality of both latex and sheet rubber as processing is not possible  in adverse climatic conditions.

 

Meanwhile, consumption increased marginally at 0.6% in July, as per the data of the board. In July 82,500 tones were consumed as against 82,000 tones. Cumulative consumption  in April – July period dropped to 330,480 tones as against 337,080 tones in the same period of last FY. 

 

Heavy increase in local prices in turn,  caused surge in import of rubber. 40% increase in import recorded in July compared to July, 2012. In this July 29,311 tones were imported as against 21,059 tones. During April – July period total import was 87,656 tones as against 80,178 tones in the same period of last fiscal year. Export was just 40 tones  during last month as against 1882 tones and cumulative export dropped to 1928 tones as against 4907 tones in April – July period of 2012.  As per the data of the board total stock is 178,000 tones as against 216,000 tones in July, 2012. This is for the first time during last couple of years Rubber Board records a drop in the stock of rubber in the country.