Friday, March 8, 2013

Is there any possibility, considering the current scenario?


Centre has promised Kerala that it will peg import duty on rubber at 20% in view of the states concern over crash in prices of the domestic produce. The current rate of import duty on rubber is `.20 a kg or 20%, whichever is lower. This was fixed when the domestic rubber prices were soaring. The natural rubber growers are now hit by crash in price with the industrial users importing huge quantities from abroad. This scenario could be overcome to an extent by enhancing the import duty, said Kerala Chief Minister Oommen Chandy.

The natural rubber prices in the local market have fallen to `.157 per kg, (as on 28.02.2013) nearly 17% since 29th February 2012, when price of RSS4 grade was at `.188.50 per kg, due to slowdown in economy and also on sluggish demand. Union Commerce Ministry had already forwarded this proposal to Finance Ministry for clearance.   

Today, the contract for delivery in August advanced as much as 2.4% to ¥298.9 a kg and closed at ¥298.5 a kg on the Tokyo Commodity Exchange and it is expected to trade above ¥300 a kg on Monday. RSS4 grade rubber in India closed with a positive note at `.160.50 a kg and the price of RSS3 grade closed at `.166.02 per kg at Bangkok. While Malaysian SMR 20, closed at `.157.87 a kg. On the Tokyo Commodity Exchange, March futures series closed at ¥279.9 per kg.

Read lot more in Rubber4U – 15th March 2013 issue

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