The first quarter of the current financial year has seen a steep rise in the import of natural rubber (NR) against a poor performance on the export front. Imports have risen by 107 per cent at 44,093 tonnes during April-June against 21,259 tonnes in the same period a year ago.
According to the latest estimates of the Rubber Board, total imports crossed the 50,000-tonne-mark by July 11 to hit 51,000 tonnes. Annual imports were 79,927 tonnes in 2008-09.
This year, in June alone, India had imported 15,000 tonnes, which is the highest in a month’s period, against 6,948 tonnes in the same month last year.
The current trend indicates that total imports may cross 150,000 tonnes by the end of 2009-10, since the global market situation strongly favours large-scale imports. In the domestic market, the commodity has a price tag higher by Rs 16-17 a kg than major overseas markets and this wide gap may tempt user industries to import more rubber.
According to leading stockists, even a 20 per cent duty bound import is a viable option for the industries, as local VAT plus transit charges enhance the cost of procuring rubber in India.
The same price difference has caused a steep fall in export in Q1 of the current financial year.
Registering a decline of 95 per cent, exports were just 834 tonnes against 16,300 tonnes during April-June last financial year. Exports in June were only 16 tonnes against 9,451 tonnes in the same month last year.
A sharp rise in imports has also caused an increase in the total stock of rubber at 188,000 tonnes against 136,000 tonnes by June 2008. A setback is also seen in the production of NR as total output decreased by 11 per cent to 159,520 tonnes in April-June against 179,565 tonnes in the same period last year.
Consumption has marginally decreased by 0.5 per cent during the period. Total consumption recorded was 214,500 tonnes against 215,300 tonnes in April-June last financial year.
Source : Business Standard