Rubber production picking up

Kottayam, Aug 1:

Rubber Board Chairman Sajen Peter said here Natural Rubber (NR) production in the country was picking up and the output during April-July 2010 was estimated to be higher by 6.5 per cent over the corresponding period in the previous year. 

Address the 163rd meeting of the Rubber Board at the Board Headquarters here yesterday, he said NR production in 2009-10 was lower by 3.8 per cent over 2008-09 mainly owing to adverse weather conditions, growing stock of old plantations and intense harvesting done in 2008. 

It is projected that NR production in 2010-11 would be 893,000 tonne, he said.

NR consumption in 2009-10 increased by 6.8 per cent over that of the 2008-09 and the projected consumption of NR this fiscal is 978,000 tonnes. 

During April-July 2010 also, consumption recorded an increase of 3.3 per cent as compared to the same period last year.

Consumption during the first quarter of the current fiscal in the automotive tyre sector grew by 5.4 per cent but the non-tyre sector recorded a marginal decline of 0.3 per cent. According to projections there would be a deficit of 85,000 tonnes this year.

Mr Peter stated that there would, however, be no shortage in the domestic market as the opening stock in 2010-11 was 253,975 tonnes.

He also informed the meeting that world NR production had declined by 4.2 per cent in 2009. However, in the first quarter of 2010 world production recorded a growth of 20.3 per cent over the first quarter of the 2009. Among the major producing countries only China recorded a production decline which was due to severe drought. 

The projections of world production in 2010 and 2011 are 10.16 and 10.73 million tonnes respectively. 

World consumption had declined by 7.7 per cent in 2009 owing to recession. 

During the first quarter of 2010, world consumption increased by 23.3 per cent over the same period last year. 

The consumption in 2010 and 2011 are projected as 10.19 and 10.66 million tonnes respectively.

Mr Sajen peter also informed the meeting the annual average price of rubber in the domestic market had been consistently lower than that in the international market from 2003-04 to 2008-09 with an average yearly difference of Rs.4.31/kg. 

But there was a reversal of this trend in 2009-10 when the annual average domestic price was Rs. 3.85 higher than the international price. 

The main reason for the higher price was relatively low level of inventories with consumers. 

The share of stock of NR with manufacturers during April-June 2009 was 24 per cent as compared to 42 per cent during the corresponding period in the previous year.

He also stated that the panel of experts which had been constituted as per direction of the Delhi High Court already conducted the hearings of the petitioners and submitted its report to the Department of Commerce.

(centralchronicle.com)