Spot rubber stays firm on supply crunch

Spot rubber stays firm on supply crunch


Kottayam, Aug. 18

Spot rubber continued to rule steady on Wednesday. The market seemed to be suffering from acute short supplies. Practically there were no buyers or sellers in the main trading centres to give a definite direction to sheet rubber.

According to dealers, the grade finished unchanged at Rs 184 a kg amidst thin volumes. The Board's rate was also steady at Rs 183 a kg for RSS 4.

Futures decline

In futures, the September series declined sharply to Rs 171.20 (176.38), October Rs 164.49 (169.36), November Rs 163.90 (166.74) and December Rs 164.75 (167.50) a kg for RSS 4 on the National Multi Commodity Exchange (NMCE). The benchmark Tokyo rubber futures contract improved nearly 3 per cent to a three-month high following a relative stability in Japanese stocks and a pause in the Yen's advance against dollar.

The August futures for RSS 3 moved up to ¥330/Rs 180.22 (¥325.7) a kg during the day session on the Tokyo Commodity Exchange (TOCOM). The grade finished steady at ¥330 during the night session. RSS 3 (spot) increased to Rs 154.78 (Rs 153.45) a kg at Bangkok. Spot rates were: RSS-4: 184 (184); RSS-5: 174 (174); ungraded: 164 (164); ISNR 20: 156 (156) and latex 60 per cent: 114 (114).


Rubber Board chief calls for steps to boost supply.

Our Bureau

Kochi, Aug. 18

Mr Sajen Peter, Chairman, Rubber Board, has called for promotion of replanting and new planting in order to augment supply and check further rise in prices of natural rubber.

The growers and consumers should come together to address common issues and share information and technology, he said while inaugurating the second edition of India Rubber Summit and Dinner organised by Rubber Asia, a premier rubber magazine here.

Annual award

Mr P.C. Cyriac, former Chairman of the Indian Rubber Board and former Chief Secretary of Tamil Nadu, said that Rubber Asia will institute an annual award after late Dr B.C. Sekhar, the world-renowned rubber scientist and administrator who contributed immensely to the global rubber industry.

The award will be given to a person from Asia who has contributed most for the development of the rubber industry.

About 350 delegates from India and countries such as China, Malaysia, Indonesia, Singapore, Sri Lanka, Laos and Vietnam attended the summit organised in association with All India Rubber Industries Association and Automotive Tyre Manufacturers Association.

In his keynote address, Dr Stephen V. Evans, Secretary General of International Rubber Study Group, said that the supply of natural rubber may match demand in the coming decade if normal circumstances prevailed. Dr James Jacob, Director, Rubber Research Institute of India, said that climate change will have a serious impact on rubber production and cautioned the industry to factor in the uncertainty prevailing on the production front.

Mr Ertugrul Yilmaz, a reputed tyre technologist, said the radialisation of truck and bus tyres, which needs natural rubber in large quantities, will further push up the demand for natural rubber.

In his welcome address, Mr Kurian Abraham, Editor and Managing Director, Rubber Asia, said that re-emergence of China and India as global economic powers would throw up new challenges to the rubber industry, especially on the supply side.

Mr John S. Powath, Executive Director, Rubber Asia, said that the Rubber Summit and Dinner would be made an annual event and the next edition would take place on August 13, 2011.




Rubber insurance scheme modified


Kottayam, Aug. 18

The Rubber Plantation Insurance Scheme for mature holdings jointly implemented by the Rubber Board and the National Insurance Company has been modified. The modifications are applicable to mature plantings in the age group of eight to 40 years.

Planted areas up to five hectares in the traditional areas and 20 hectares in non-traditional areas are eligible for the scheme. The sum insured has also been raised to Rs 250,000 a hectare, in case of complete loss of the plantation. The rate of premium including service tax is Rs 2,206 for a period of three years.

In case of partial damage of the holding, the amount of compensation per tree in the age groups of eight to 11, 12 to 15 and 16 to 22 years are Rs 800, Rs 840 and Rs 900, respectively. The amount of compensation is Rs 900 for trees under low frequency tapping in the age group of 23 to 40 years also. The maximum number of trees per hectare will be taken as 450 for consideration of settlement of the claim.

The proposal for insurance coverage of plantations under low frequency tapping is subjected to the recommendation of the inspecting officers form the Rubber Production Department of the Board.

In addition to damage from fire, wind, flood and landslide, the attack by wild animals is also now included. The scheme for plantations in the age group of one to eight years, with a compensation up to Rs 1,00,000 for a premium of Rs 938 for a period of eight years continues to be in operation. More details can be had from regional offices of the Board.