Natural rubber (NR) imp-orts have crossed the 100,000 tonne mark, by September 7, paving way for a whopping rise in the overall imports during the present financial year. This is for the first time that imports have crossed this landmark.
By the opening of this week, imports just managed to cross 100,000 tonnes, according to the latest data with the Rubber Board. This is against the total import of 79,927 tonnes during 2008-09. During the April — August period of the present year, the country received 98,946 tonnes of rubber as against 27,722 tonnes during the corresponding period last fiscal. During August alone, imports were 21,339 tonnes against 20,412 tonnes during July. During August, 2008, imports were 3,844 tonnes, according to the Rubber Board data.
The sharp rise in imports is attributed to the price advantage across the world, excluding India. The local price of RSS-4 grade was up a maximum of Rs 17 per kg during the April — August period.
Rubber poured into the country through the advance licence scheme, which is highly advantageous to the industry. Even a 20 per cent duty-bound import was a viable route for a short period when the global price was lower by Rs 17 per kg.
Rubber-based industry sources expect over a 100 per cent rise in the overall import during the present fiscal. They expect a total import of 150,000 tonnes, this year. But, local traders do not agree with this as imports would slow down during the remaining months owing to two reasons.
They said, the industry would complete the quota through the advance licence scheme within a short period. The total volume to be imported through the route is 125,000 tonnes. The price difference between the local and major international markets has been narrowed to just Rs 2 per kg which is not viable for a duty-bound import. Also, the main production season in India will begin next month and prices are expected to fall.
So, local traders do not foresee a much sharp increase in imports, especially during the October - January period.
Meanwhile, the same price situation badly affected the export sector as India could not export even a single kg of rubber in July and August. Exports during the April - August period was 878 tonnes as against 28,646 tonnes during the same period last year. In August, ‘08, 3,047 tonnes were shipped, while August saw no exports. The sharp decline in exports is also due to the higher prices in the local market and India could not cash in on the rise in demand, especially in countries like China. According to the latest estimates of the board, the total stock had risen to 195,000 tonnes as against 114,000 tonnes in August, 2008. The rise in import and decline in exports have caused the swelling up of the stock.
Meanwhile, the production scene recorded a 13.3 per cent decrease during April -August period while consumption edged up by 2.1 per cent. Total production is 273,575 tonnes in April - August period against 315,365 tonnes in the same period of last year. 376,350 tonnes were consumed, against 368,690 tonnes in April - August period of 2008-09.
Source : Business Standard