Rubber prices firm up on lean season hopes

Rubber prices firm up on lean season hopes
June 14, 2011


After a period of fluctuation towards May-end , rubber prices have been witnessing a steady trend. Though growers are hopeful of a further rise in prices , the possibility of higher imports might affect market sentiments . The prices rose from Rs 217 per kg towards the end of May to Rs 226 as on Monday, as the sector entered the lean production season in June. Domestic prices have been steady despite a slight fall in international prices from Rs 233.07 per kg on Saturday to Rs 231.84 per kg on Monday.

“Widespread rains have affected rubber production in most parts of the state. Tapping was done for a few days in areas where rain guarding of trees have been done,” said KK Abraham , president of the Palai Rubber Marketing Cooperative Society . Production might receive a setback as the monsoon is expected to intensity in the coming weeks. “We expect prices to go up in the coming weeks,” he said. “That it has not fallen from the present level despite high imports and better production is an encouraging sign for growers” , he added. Production was 4.6 % higher in April 2011 compared to the previous year.

Though the figures have not been finalised so far, the output is expected to be higher in May too. Imports were at 6,518 ton-ne in April but th-ey rose to 16,293 tonne in May. Ev-en then, the cumulative imports of 22,871 tonne in April and May this year are 14% lower than the inward shipments during the same period last year. Though higher availability has brought down prices in May, the lean season starting from June 1 took them to the present levels.






Rubber extends beyond Kerala: Maharashtra, the next hot spot
June 13, 2011

KOCHI, INDIA (Commodity Online): Kerala has long been a potent source of natural rubber in India. In fact 90% of India’s natural rubber output comes from Kerala. But analysts argue that the plantations in Kerala have reached a saturation point. And this has prompted India’s Rubber Board to seek land outside Kerala, where rubber could be cultivated. North Eastern States like Tripura, which has climatic conditions akin to that of Kerala were focused initially. But eventually, other States with potential for rubber cultivation were discovered: Maharashtra and Goa.

In the 1960s, ‘trial runs’ were carried out in Maharashtra and Goa for analysing the potential of natural rubber. In 1979, under the New Planting Scheme, regions were identified in Goa where rubber planting could be carried out.

Latest figures sourced from Rubber Board inform that there are 220 holdings of natural rubber in Maharashtra and 195 holdings in Goa. Together they account for 415 holdings of natural rubber.

In Maharashtra, 900 ha of natural rubber are planted while in Goa, 700 hectares have been planted rubber. Of these, 100 hectares in Maharashtra is mature area or worthy of tapping while in Goa this figure is at 650 hectares. Goa yields 900 tons/year; an average 1400 kg/ha while Maharashtra yields 200 tons/year; an average of 2 tons/ha.

Almost 60% of Goa rubber trees have grown old and needs re-plantation while in contrast, Maharashtra rubber trees are relatively young; which explains their enhanced yields.

In the ensuing five years, the Rubber Board has decided to plant 2500 ha of rubber in new planting in Maharashtra and 500 hectares of replanting in Goa. This totals about 3000 hectares.

With 10,000 ha of land recognised as having potential for rubber cultivation in Sindhudurga and Ratnagiri districts, unconfirmed sources peg Maharashtra rubber cultivation acreage potential at 50,000 hectares!

However there are hurdles to be cleared which are embedded within the system: the land rules.

“Currently, according to the law of land, in a Hindu Undivided Family system, consensus among the family members is vital for starting off with an activity in a land owned collectively. Without the consent of all the members, it would be difficult to start off. But with a string of generations owning the land, it would be difficult, if not impossible to trace each and every link in the family and earn their consent, who invariably would be scattered. Sometimes, the consent would be required from about 60-70 people.”—said a Rubber Board official.

Further, in Maharashtra, only farmers are entitled to buy agricultural land.”Unless you can prove that you are a farmer, you will not be able to buy agriculture land in Maharashtra; however rich you may be…” added the Rubber Board official.

In Maharashtra, rubber trees need additional care in the form of irrigation and fencing. Private nurseries in rubber are also missing.

In Goa too, there are stumbling blocks in the form of Tree Preservation Act.

“In Goa, if you have to cut down a tree, you not only need the consent of the government, but also furnish a chalan of Rs.300/ tree. Only, cashew and coconut are exempted from the rule. This law acts as a deterrent when it comes to replanting rubber (which involves cutting down rubber trees and planting new ones)…” the Rubber Board official explained.

“We have requested the state government to also exempt rubber from the ambit of Tree Preservation Act.” the official said.

“The Rubber Board is only a facilitator. Policy decisions have to come from the governments.” the official concluded.