Northeast emerging as rubber hub

Northeast emerging as rubber hub
October 21, 2011





GUWAHATI, OCT 21:
The North-East is emerging as the rubber hub of India as experts believe that large-scale cultivation of the crop can bridge the shortfall in supply amid rising demand.

Traditionally, rubber is grown in the southern states of Kerala and Tamil Nadu, but an increase in demand for the crop has resulted in a search for other regions where cultivation can be pursued.

Rubber planting has not expanded to the desired extent in Karnataka, Andhra Pradesh, Goa, Maharashtra and Orissa, where climatic conditions support their growth.

“We believe that now we have to look to the North-East to produce more natural rubber,” Mr K.G. Mohanan, Additional Rubber Production Commissioner of the Rubber Board, said.

A search was launched and it culminated in attempts by the board to grow rubber in Assam, Tripura, Meghalaya, Mizoram, Manipur, Nagaland and Arunachal Pradesh, he said.

“Though the agro-climatic conditions prevailing in some parts of the region are moderately suitable for planting rubber, it has been proven through experimental plantation that under appropriate agro-management practices, the commodity can be grown as an economically viable crop,” Mr Mohanan said.

As per reports, the Soil Conservation Department of Assam planted rubber in the state as early as 1950s and the first commercial planting was done by Tripura’s Forest Department in 1963.

Encouraged by the success of pilot plantations, the Tripura Government had set up Tripura Forest Development Plantation Corporation Ltd (TFDPC) in 1970, while seven years later, the Government launched a pilot scheme for the economic settlement of tribals displaced because of rubber farming.

Mr Mohanan said substantial progress in rubber plantations in the region was achieved during the V11th Plan, when the Centre sanctioned a scheme for Accelerated Rubber Development in the North-East.

Exploratory surveys done by the board in the past indicated that a total of 4,50,000 hectares of land in the region is suitable for rubber plantations.

Another positive aspect is that the region is generally free from the major plant diseases that are prevalent in the traditional belt and soil is sufficiently ‘deep’ and easy to work, he said.

“However, proper care has to be taken in selecting land as water-logging and erosion are a common problem,” he observed.

Rubber planting helps in socio-economic development of the rural people and has proven to be an effective programme for economic settlement of tribals.

Scientifically raised rubber plantations provide a green leguminous ground cover and a green umbrella cover. They purify the atmosphere and improve soil properties, he said.







Tokyo futures edge higher as oil steadies (Oct 21)
October 21, 2011





BANGKOK, Oct 21 (Reuters) – Tokyo rubber futures ended slightly higher on Friday on the back of steadier oil prices but the market was still held back by uncertainty about the European debt crisis, dealers said.

The benchmark rubber contract on the Tokyo Commodity Exchange for March delivery rose 0.7 yen to settle at 282.2 yen ($3.6) per kg.

The most active rubber contract on the Shanghai futures exchange fell 730 yuan to finish at 24,715 yuan ($3,870) per tonne.

“A recovery in oil prices encouraged players to buy back contracts, but the EU debt stalemate still weighed on the market as no one knows what the solution will be,” one dealer said.

Brent crude held steady above $109 after recovering the previous day when the market was optimistic about a solution to the debt crisis, which might stem any slowdown in oil demand.

France and Germany said European leaders would examine in detail a global solution to the crisis on Sunday and aim to adopt the plan on Wednesday at the latest.

Dealers said they expected TOCOM rubber to rise further next week as firm oil prices should lend support, especially as prices had found strong support at 280 yen.

($1 = 76.870 Japanese Yen)

($1 = 6.386 Chinese Yuan)






Rubber Producers’ Group to Advise Member Countries to Slow Exports
October 21, 2011





21 October 2011

The International Rubber Consortium will advise member countries Thailand, Indonesia and Malaysia to slow natural rubber exports, Chief Secretary Yium Tavarolit said Friday.

“IRCo will [also] recommend members tell farmers that they should reduce raw rubber sales until prices are at a level reasonable to both sellers and buyers,” the Bangkok-based Yium said.

The group will keep natural rubber’s floor price at $4 a kilogram, Yium said.

IRCo first issued the recommendation in August amid a selloff in the futures market. Friday’s reminder comes on the heels of sharp declines in natural rubber prices due to global macroeconomic concerns.

Market fundamentals are unchanged, particularly as global carryover stocks are low–about 1.2 million-1.3 million metric tons, compared with about 2 million tons in previous years. Demand is firm as global auto sales are healthy, he said.

IRCo member countries account for 70% of global natural rubber production.