Sheet rubber touches Rs 185/kg on short covering

Sheet rubber touches Rs 185/kg on short covering.

Kottayam, July 9

Spot rubber prices explored further highs on Friday. The market gained on fresh buying and short covering following the rise in domestic futures though major consuming industries were not active.

Sheet rubber improved to Rs 185 from Rs 183.50 a kg, while the trend was mixed as ungraded rubber and latex 60 per cent finished flat amidst dull volumes. The prices are higher than the international price level by almost Rs 22 a kg.

Apart from the high prices, the user-industries have also been complaining about the non-availability of rubber. The industry has, therefore, approached the Government for importing 2 lakh tonnes of rubber duty-free. The NMCE rubber futures continued to be bullish gaining 0.7 per cent during the day.

Futures gain

The July series increased to Rs 187.90 (186.52), August to Rs 180.12 (178.76), September to Rs 173 (171.68) and October to Rs 166.90 (165.20) a kg for RSS 4. RSS 3 weakened with the July futures dropping to ¥355\Rs 187.34 (¥356), August to ¥317.1 (¥319.9), September to ¥305.8 (¥308.9), October to ¥288.1 (¥291.4), November to ¥277.9 (¥281.1) and December to ¥273 (¥276.3) a kg during the day session on the Tokyo Commodity Exchange. RSS 3 (spot) slipped to Rs 163.36 (164) a kg at Bangkok.

Spot rates were (Rs/kg): RSS-4: 185 (183.50); RSS-5: 180 (179); ungraded: 175 (175); ISNR 20: 162 (161) and latex 60 per cent: 128 (128).


Karnataka rubber growers yet to tap potential
A.J. Vinayak

Mangalore, July 9

If the demand-supply figures are any indication, rubber growers in Karnataka, it seems, are unable to meet the needs of rubber-based industries in the State.

Though there is demand for nearly 57,200 tonnes of rubber in the State, only 20,000 tonnes is being produced in Karnataka.

The rest, around 37,200 tonnes of rubber, is being met by growers from other States.

Mr D. Narayana Swamy, Deputy Rubber Production Commissioner, Rubber Board, Mangalore, told Business Line that more than 200 rubber manufacturers in the State consume nearly 57,200 tonnes of rubber, which accounted for 6.7 per cent of the national consumption.

The turnover of rubber-based industries in the State was more than Rs 200 crore, he said.

Stating that rubber cultivation is being expanded in the State, he said rubber was being grown on 35,000 hectares of land in Dakshina Kannada, Udupi, Kodagu, Chikmagalur, Shimoga and Uttara Kannada districts of the State. Of that, plants in 20,000 hectares were yielding rubber.

Still, there is potential to expand the area under rubber cultivation to meet the needs of industry.

Mr Narayana Swamy said rubber can be grown on nearly one lakh hectares of land in these districts. “There is an opportunity for cultivating rubber in these districts. The agro-climatic conditions in these districts is suitable for the cultivation of rubber.”

There is a good opportunity for expanding rubber cultivation in Bantwal and Puttur taluks in Dakshina Kannada district; Karkala, Udupi and Kundapur taluks in Udupi district; Sagar, Sorab and Thirthalli in Shimoga district; and N.R. Pura and Koppa in Chikmagalur district, Mr Narayana Swamy added.