Natural rubber consuming sector welcomed the government’s decision of reducing import duty on natural rubber to 7.5%, which would help in boosting raw material supply in the market. Looking at the price position and availability situation, it will provide much needed respite to the industry.
The government's efforts to cool down the rising natural rubber prices by lowering import duty may not yield the desired results, as consuming sector are unlikely to resort to overseas purchases, as the international prices of natural rubber is more than the domestic price. If, by adding 7.5% import duty on Rs. 223/-, the landing cost of natural rubber will be around Rs 240/- a kg. This will not be an economic proposition for the user industry.
The above scenario is going to prove the forecast made by Rubber4U, during May 2010 and also at IRC 2010, to be coming true.
Read lot more in Rubber4U – 1st January 2011 issue
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