The estimated shortfall in global production during 2009-10 may not affect the domestic market as there is enough stock in the country, said Mr Sajen Peter, Chairman of Rubber Board.
During April-October 2009, rubber production in the country fell 9.4 per cent compared with the same period a year ago, according to statistics available.
According to revised estimates, the total production during 2009-2010 would be 8,400,000 tonnes. It was earlier estimated that the rubber production during the same period would be 8,670,000 tonnes. The unexpected change in weather, the higher production base of 2008, attempts to retain existing old and uneconomic plantations are some of the reasons for the sluggish production, Mr Peter told Business Line.
Offtake on the rise
The sluggishness created by the global economic crisis in rubber consumption has almost come to an end. There has been a 3 per cent increase in consumption from April to October. The total rubber consumption during the current financial year would be 9,310,000 tonnes. This is 50,000 tonnes more than the earlier estimates.
Though there is a difference of 91,000 tonnes between the total consumption and production, the deficit will not affect the availability of rubber in the domestic market as there was a reserve of 1,96,084 tonnes at the beginning of the current financial year.
Global scenario
During the first half of 2009, global natural rubber production and consumption declined 7.4 per cent and 11.7 per cent respectively. Except China, production fell in all other major rubber producing countries. China recorded 11.7 per cent increase in production and 20.7 per cent increase in consumption.
While the average price in the domestic market for RSS 4 was Rs 101.12 a kg, the average price of its equivalent grade (RSS 3) in the international market was Rs 103.79.
(Source: irco.biz)
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