MUMBAI (Commodity Online): Having well moisture soil due to improved rainfall in Kerala, the natural rubber production made up better in July while the demand declined slightly.
According to provisional data released by Rubber Board India's natural rubber output in July rose 14.5% on year to 57,500 mt. The demand declined 1.78% to 77,500 mt in the same period.
The output in Apr-Jul rose 6.5% on year to 223,250 mt, while demand rose 3.3% to 307,550 mt, it added. Rubber import in July fell 49.8% on year to 14,906 mt, while no export was recorded due to the current high domestic prices.
According to the board, the production in July improved due to rise in soil moisture following rainfall in key growing areas of Kerala.
The 1000-ha rise in total tapped area and the prevailing high prices also boosted the output, it said. The inventory level of natural rubber in the country as on July 31 was around 220,083 mt. According to the board's projections, natural rubber output in 2010-11 (Apr-Mar) is expected to be 893,000 mt, while demand is seen around 978,000 mt.
According to market participants the demand fell in in July due to a lock-out in one of the plants of Apollo Tyres in Terambra, around 60 km from Kochi. The plant has a daily production capacity of around 300 mt.
India is considering a cut in the import tax on natural rubber to help bulk consumers such as tire makers, whose input costs have mounted because of a local shortfall, Currently the import tax on natural rubber is 20%, translating to around Rs.30 per kg (65 U.S. cents) based on international prices.
The government is looking at capping the tax at Rs.20.46/kg (44 U.S. cents).
Wednesday, August 4, 2010
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment