Rubber imports dipped in June due to high global prices.

Natural rubber imports last month declined by more than half at 9,255 tonnes due to higher global prices, the latest Rubber Board data revealed today.

India had imported 20,258 tonnes in the same month last year. "Import of natural rubber decreased in June 2010 as the international price of sheet rubber was higher till June 8 than the domestic price," a senior rubber board official said.

The rubber price (RSS-3 variety) at Bangkok market was hovering between Rs 169-181 per kg during June 1-8 period, while the domestic rate was in the range of Rs 166-169 per kg.

According to the data, domestic natural rubber production this year rose by five per cent to 57,000 tonnes in June as compared to 54,255 tonnes in the same month last year.

"Production increased last month on account of an increase in the tapped area (and) increased percentage of rain guarding during 2010-11, anticipating attractive price in the monsoon season," the official said.

Consumption grew marginally to 75,000 tonnes during June, 2010, compared to 74,220 tonnes in June, 2009.

For FY 2010-11, Rubber Board has projected rubber production to grow by 7.4 per cent at 8.93 lakh tonnes against 8.31 lakh tonnes in last fiscal while the domestic consumption is estimated to rise to 9.78 lakh tonnes this fiscal against 9.30 lakh tonnes in FY 2009-10.

Natural rubber import is projected to fall to 70,000 tonnes in 2010-11 from 1.7 lakh tonnes last fiscal, while exports are expected to almost double at 50,000 tonnes in the review period.

Source : Business Standard