Rubber growers get Rs.95 lakh assistance for 2010-11

Rubber growers get Rs.95 lakh assistance for 2010-11
Posted: 26 May 2010 05:55 AM PDT

The government Wednesday said 18,915 rubber growers will receive financial assistance of Rs.95 lakh this financial year.
The growers will receive the amount on the basis of price spectrum band 2009, calculated on the basis of seven years' moving average of international price for the commodity.
The amount has been provided under the price stabilisation fund scheme, which was launched by the commerce ministry in April 2003 with the aim to provide financial relief to tea, coffee, natural rubber and tobacco growers when the prices of these commodities fall below a specified level.
The scheme is based on the principle of contribution from the growers and from the government depending upon boom, normal and distress years. During the distress year, the growers can withdraw from the scheme.
The annual average domestic price for rubber was Rs.97.56 per kg during 2009 and it was a normal year for rubber, an official statement said.






Spot rubber turns weak
Posted: 26 May 2010 05:53 AM PDT

On Tuesday (25 May 2010), the spot rubber market turned weak as the market failed to break above Rs 170 per kg for sheet rubber and the grade moved down to Rs 168 (170) mainly on selling from dealers following the sharp declines on National Multi Commodity Exchange (NMCE).

The June futures for RSS 4 declined to Rs 164.51 (168.86), July to Rs 163.98 (168.59), August to Rs 156.01 (160.59) and September to Rs 151.26 (153.75) a kg on the National Multi Commodity Exchange.

Spot rates were (Rs/kg): RSS-4: 168 (170); RSS-5: 166 (167); ungraded: 163 (165); ISNR 20: 149 (149) and latex 60 per cent: 106 (106).

(indiainfoline.com)





JK Tyre says to raise prices by 3-4 pct in June
Posted: 26 May 2010 05:50 AM PDT
NEW DELHI, May 25 (Reuters) - JK Tyre and Industries (JKIN.BO: Quote, Profile, Research) plans to increase prices of its products by 3-4 percent in June, on surging costs of raw material, especially rubber, Managing Director Raghupati Singhania said on Tuesday.

The firm has already raised prices by 5 percent since January.

It expects 30-35 percent revenue growth in FY11 as vehicle sales boom, but profitability may be under pressure due to the rise in raw material prices, Arun K Bajoria, president, said.

Natural rubber makes up over 40 percent of the cost of a tyre. It has risen 21.5 percent to 16,900 rupees per 100 kilograms so far this year.

Earlier on Tuesday JK Tyre had reported an 82 percent rise in Jan-March net profit to 255 million rupees. Its quarterly net sales rose to 11.3 billion rupees from 9.26 billion rupees.

JK Tyre shares ended down 1.74 percent at 177.75 rupees in a weak Mumbai market.


TOCOM May rubber expires, fewest deliveries since February
Posted: 26 May 2010 05:56 AM PDT
TOKYO, May 25 (Reuters) - The May rubber futures contract on the Tokyo Commodity Exchange expired on Tuesday at 377.9 yen per kg, up 0.1 yen on the day, with 102 lots or 510 tonnes of deliveries, the fewest since the February contract at 56 lots.

A month earlier, the April contract expired at a record high price of 455.4 yen per kg with 142 lots delivered.

The relatively small deliveries in the past few months were due to limited supply available via TOCOM as prices in the physical market stayed high, traders said.

Prices of the next spot June contract <0#JRU:> are set to firm again when its expiry date of June 24 nears because rubber supply is unlikely to increase drastically until July, said a manager at a Japanese commodity brokerage.

"But for now, such influence from the spot contract is tame as we have one month to go. The rubber market rather looks vulnerable to bearish views in other markets and is set to fall in the near term," the manager said, adding the key TOCOM contract would soon test technical support of 260 yen a kg.

On Tuesday, the key October contract fell 6.2 yen to 271.0 yen per kg. [RUB/AS] Newly-listed November contract takes over the benchmark status when it starts trading on Wednesday.

(in.reuters.com)