Rubber imports dips marginally to 42,499 tonnes in August

Enough stocks of rubber affected the rubber imports

For the first time in the current financial year, natural rubber imports have marginally declined to 42,499 tonnes in August due to stockpiling, though they are expected to rise in the coming months.

India's natural rubber imports stood at 43,221 tonnes in the same month last year, according to the data available with Rubber Board.

"Imports have gone done down just marginally due to enough stocks of rubber being imported till July this year," a senior Rubber Board official said.

The official added that in coming months, rubber import is likely to surge as prices of natural rubber in international market are hovering around Rs 100 per kg, while in domestic market the prices are at around Rs 120 per kg as of now.

However, during April-August period of current financial year, rubber imports have risen to 1,82,395 tonnes from 1,33,801 tonnes in the year ago period.

For the full financial year 2013-14, the imports of the commodity increased 49% to 3.24 lakh tonnes from 2.17 lakh tonnes in 2012-13.

Shipments of natural rubber have been increasing despite, the Centre having raised import duty on natural rubber to Rs 30 per kg, or 20%, whichever is lower, in December last year.

The basic customs duty on natural rubber earlier stood at Rs 20 per kg, or 20%, whichever is lower.

About 95% of imported rubber is used by tyre manufacturers and the country imports a big chunk of the commodity from Vietnam and Indonesia.

Meanwhile, the production of natural rubber dropped to 51,000 tonnes in August 2014 as against 69,000 tonnes in the same month last year.

However, consumption of natural rubber rose to 85,000 tonnes during the month from 81,570 tonnes in August 2013, according to the data.

The country had not exported rubber in August this year as compared to 314 tonnes of the rubber shipped out during the same month a year ago.

With an aim to address all relevant issues related to the rubber sector, the government had set up an Expert Committee consisting of representatives of various stakeholders in the sector to recommend a National Policy.