KOTTAYAM: The price of various grades of natural rubber soared to another all time record, while RSS4 clicked Rs 186 a kg in the domestic market on Friday, as a few unidentified market players continued to pull strings to jack up the rates, even when the international RSS3 price was locked at Rs 163.36 a kg in the Bangkok market on Friday's transactions.
Rumours are being spread in the domestic market that the price will reach Rs 200 a kg shortly, which is also said to be influencing the growers to hold their stocks. Arrivals in the market are at a bare minimum, leaving consuming industries gasping, though rumours spread that large scale crumb imports are in the offing during the coming weeks. There is heavy demand from consuming industries for the raw material, though they claim sufficient stocks for a couple of months ahead.
People connected with the domestic market are closely watching the recommendations by the Union Commerce Ministry through the Rubber Board, which has been asked by the Delhi High Court to submit, on a petition filed on behalf of the consuming industries. The deadline set by the court for creating a panel comprising various stakeholders and forwarding the recommendations on the pleas of consuming industries, such as liberal imports, is July 17.
The Rubber Board chairman is already in New Delhi to finalise the recommendations, on the basis of the discussions held with various groups here.
Market observers have cautioned rubber growers again on the practice of abnormal levels of stocks with them, since the domestic rates have been always lower than the international rates even during lean production months in the past. Apprehensions are there that the higher domestic price prevailing now, an increase to the extent of Rs 23 a kg, would undermine the interests of growers in the long run, especially since industries are keen to have their say on the basis of statistics.
In 1996 and 2008, the prices of RSS4 had climbed to Rs 76 and Rs 142, respectively, but it nosedived to Rs 19.50 and Rs 59, respectively, within a period of just three months.
(expressbuzz.com)
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