Short supply fears in rubber overriding price rise

Chennai, Jan. 19

Rubber product manufacturers are concerned more about availability than price, said Mr Vinod T. Simon, President, All-India Rubber Industries Association.

Addressing the media on the sidelines of the launching ceremony of India Rubber Expo 2011, he said though the rubber price is going up steeply, availability of the raw material is a bigger issue.

Felicitation:Mr K. Sankarananarayanan (centre), Governor of Maharashtra, handing over the K.M. Philip award to Mr R.K. Raman, Chairman, IRE 1011, at the India Rubber Expo 2011, in Chennai on Wednesday. From left are Mr Kishore Jhalaria, President of Reliance Cracker and Chemical Division; Mr Peter Philip, Managing Director, Philips Tea and Coffee; Mr K.M. Philip (seated), doyen of the rubber industry; Mr Arun Mammen, Managing Director, MRF Ltd; and Mr Vinod Simon, President, AIRIA. — Bijoy Ghosh

Shortage looming

“There was a supply gap of 0.5 tonnes in 2009-10. Though the country produces 8.5 lakh tonnes of rubber annually, the demand was nine lakh tonnes. Triggered by the country's growing auto sector, the demand is expected to go up to 9.5 lakh tonnes in 2010-11, thereby widening the gap to 1 lakh tonnes that needs to be bridged through imports.

“At this rate, India will face a shortage of at least five lakh tonnes of rubber by 2015,” he said.

Duty cut

However, he said the Government's recent announcement on duty cut (to 8 per cent from 20 per cent earlier) came as a breather.

Talking on the expo, which was inaugurated by the Governor of Maharashtra, Mr K. Sankaranarayanan, here on Wednesday, he said this year it is spread over 15,000 sq.mt with over 300 participating companies from India and around the world.

And the organisers expect over 20,000 visitors from over 30 countries.

About 40 eminent rubber technologists, scientists and experts from the rubber industry – Indian and international, will speak at the conference sessions on current global situation of natural and synthetic rubbers, likely trends in the future and action already in place.

A buyer-seller meet has also been organised along with CAPEXIL, which is expected to bring together at least 30 international buyers and sellers, Mr Simon said.

(Source: http://www.blonnet.com/2011/01/20/stories/2011012052072200.htm)