India's natural rubber exports have surged 38 per cent in the April-July period of the current financial year. In Q1 ( April-June) alone, total exports had registered a growth of 26 per cent, according to the latest estimates of the Rubber Board.
Total exports increased to 23,998 tonnes during April-July as against 14,816 tonnes in the same period of the previous financial year. As global market conditions were favourable for exports in July, a total of 10,862 tonnes were exported during the month.
Total imports for the first four months of 2008-09 were 23,782 tonnes as against 28,315 tonnes in the same period last year.
Though tyre manufacturers have been strongly demanding duty-free import of 100,000 tonnes, it has not been viable as global and Indian tags are almost on a par last month.
Imports, which fell 16 per cent, indicate the tyre industry could not avail the advance license route, which is 100 per cent duty free.
More import will be possible now as the global prices are lower by Rs 10-11 a kg than the current Indian tag. Kochi market on Monday quoted Rs 136 for RSS-4 while average global price is Rs 125 a kg.
Although the industry and traders disagree with the estimates on stock, the Rubber Board said that as on 31 July, the total stock was 114,000 tonnes as against 91,235 tonnes at the same time last year. Industry sources said the stock position in India is rather weak, which is the main reason for the sharp increase in prices.
According to leading traders, total stock would be less than 80,000 tonne even at a conservative estimate. They said the slowdown in import would have reflected on stocks.
But the Board says that the production had shot up to 238,865 tonne in April-July period. Production has surged 30 per cent against 183,220 tonnes in the same period of 2007-08.
This tempted growers to stock at least a portion of the production for taking benefit in the appreciating market. It is indeed interesting to note that the consumption registered 6.8 per cent increase, up by 0.4 per cent than the rate in Q1.
