India’s rubber output projected to rise by 6.5%

MUMBAI (Commodity Online): India's natural rubber production in the first four months of this fiscal year is likely to rise 6.5% as farmers tapped more latex because of high prices, according to Rubber Board of India.

Rubber production in April-July is estimated at 223,250 metric tons, compared with 209,575 tons a year earlier.

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).

According to a projection by the Singapore-based International Rubber Study Group, the supply of natural rubber globally may stay tight for the next 10 years, The output may reach 13.7 mln tn in 2020 (Jan-Dec) from 9.6 mln tn in 2009.

Production of cars, trucks and buses in Japan increased 25.9% from a year earlier in June, rising for the eighth consecutive month, the Japan Automobile Manufacturers Association said Friday. Vehicle output rose to 861,045 vehicles in June, up from 683,922 vehicles in the same month a year earlier, the association said.

Domestic vehicle demand totaled 448,831, up 17.4%. In the January-June period, overall auto production rose 45.8% to 4.84 million vehicles, the first on-year increase for the six-month period in two years.

Malaysia, a major natural rubber producer, won't go ahead with a proposed plan to revise technical specifications for export grades of rubber, after the plan was questioned by rubber-processing company executives as it could push production costs higher, executives and government officials familiar with the matter said Wednesday.