Economy showing positive trend

India's annual inflation rate for all commodities, based on the new series of Wholesale Price Index, for the month of March fell marginally to 6.89% from the preceding month's 6.95% and 9.68% reported during the corresponding month of 2011.

Reserve Bank of India cut interest rates for the first time in three years by an unexpectedly sharp 50 basis points to give a boost to sagging economic growth, but warned that there is limited scope for further rate cuts.

The natural rubber futures have weakened in both domestic and international market on easing crude oil prices as the synthetic rubber, widely used alternative for natural rubber. With the dip in crude oil prices, the manufacturing cost of synthetic rubber also goes down. This leads to the shift in demand towards synthetic rubber from natural rubber. The demand for natural rubber is expected to rise this year as the global economy is reviving from the crisis and the present consumption trend is showing positive trend for coming months.

Read lot more in Rubber4U – 1st May 2012 issue