Rubber exports likely to decline

Natural rubber exports are likely to slowdown in the remaining months of the current fiscal owing to falling global prices.

Rubber exports in April-August jumped more than three times to reach 39,505 tonne compared with 11,410 tonne in the same period last year, registering an increase of 246 per cent.

"Due to declining trend in global prices, there will not be much scope for exporting a huge quantity of natural rubber as exported in the past few months," said Rubber Board Joint Secretary (Statistics and Planning) G Mohana Chandran.

He said the margins between the domestic and global prices have reduced to below Rs one per kg currently, as compared with Rs 10-12 per kg during earlier months, mainly owing to rise in supply in the major producing countries.

On September 12, the RSS-4 grade in India was at Rs 8,200 per quintal, while price for RSS-3 grade was Rs 8,253 per quintal in Bangkok the same day, Chandran said.

In contrast, the average price of natural rubber last month for RSS-4 grade in the Indian market was Rs 9,182 per quintal, while the average Bangkok price for RSS-3 grade was 10,303 per quintal.

The natural rubber exports in 2006-07 fiscal would still top the projected 50,000 tonne, he said.

Meanwhile, the natural rubber imports during April-August declined by 21 per cent at 23,487 tonne compared with 29,882 tonne during the same period last year.

The imports are expected to increase in the remaining months of current fiscal if the decreasing trend in the margin of domestic and global prices continues, Chandran said.