Natural rubber imports into India during the 1996-97 fiscal have declined by 70 per cent compared with the imports in 1995-96, according to industry sources.
Natural rubber import into India has been estimated to be between 16,000 and 17,000 tonnes during 1996-97 as against the 53,225 tonnes imported during 1995-96.
The decline was mainly due to the rubber board's decision not to allow imports of natural rubber under open general licence (OGL) as it anticipated a comfortable demand-supply situation.
Though import of rubber had not been allowed under Open General Licence, rubber industries could import under advance and special import licences. However, all these imports had been made under advance licences against exports of rubber goods, the sources said.
Initially, the rubber board had estimated that at least 31,000 tonnes would be imported during 1996-97 but due to a downtrend in the automobile sector and recession in the tyre industry, the imports declined.
The recession in the tyre industry and slackening of demand in the automobile sector also saw the carryover stock of natural rubber touch the one lakh tonne mark in January last.
The carryover stock at the end of the fiscal year has been put at 98,000 tonnes.
The sources said, in view of the huge carryover stock, during the current financial year too, the rubber board had recommended to the government not to allow import of natural rubber under Open General Licence.
With an estimated production of 5.79 lakh tonnes, the carryover stock was expected to help the industry tide over the demand, which was expected to be around 6.7 lakh tonnes during the current financial year.
The board felt that any shortfall, which it anticipates to be meagre, could be met through imports under advance licence.
However, the consuming industry is demanding imports under Open General Licence as they feel the shortage could be more acute.
The industry demand has gained strength especially after rubber prices shot up by over 10 per cent during the first week of this month before softening a bit this week.
The price hike came after the Union commerce ministry urged the State Trading Corporation (STC) on April 20 last to intervene and purchase rubber from the domestic market to help the growers fetch good prices.
Since then, the State Trading Corporation has procured over 600 tonnes of natural rubber, saying it was part of its commercial operations to buy sell, export and import for the domestic market.
Natural rubber import into India has been estimated to be between 16,000 and 17,000 tonnes during 1996-97 as against the 53,225 tonnes imported during 1995-96
