Sunday, December 19, 2010

Hearing on 10th February 2011

India, the second top consumer and fourth largest producer of natural rubber in the world, is facing a supply shortage, due to which prices of natural rubber rose to record high and is currently trading between Rs 199 & Rs. 203a kg and is believed that it would stay high till February 2011. The tyre industry, the main consumer of natural rubber, is not optimistic of any major relief in rubber prices in the year ahead.

Prices of natural rubber and crude oil have a co-relation as synthetic rubber, a substitute for natural rubber, depends on the price of crude oil. Crude oil prices have risen to around $90 a barrel, and is expected to remain firm.

But any move by the government to cut import duties on natural rubber could change the scenario. The central government’s response to demands for cutting import duty on natural rubber to 7.5% from 20%, will be one of the factor likely to impact prices early next year.

Delhi High Court has asked the central government to file its response to petitions filed by industry bodies in this regard. The case is posted for hearing on 10th February 2011.

Read lot more in Rubber4U – 1st January 2011 issue

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