Wednesday, December 1, 2010

NR output dips & may cut import duty

In November, NR production declined by 5.4% to 88,500 tonnes, as compared to 93,500 tonnes in the year ago period, due to heavy rain in the key producing region. Cumulative production during April-November 2010 period rose by 2.9% to 5,46,150 tonnes, as against 5,30,900 tonnes in the corresponding period of the previous fiscal, a senior Rubber Board official said.

Natural rubber imports during November rose by nearly 49% to 10,744 tonnes, as against 7,215 tonnes in the same period of the previous year. During April-November 2010, the imports rose to 1,43,468 tonnes from 1,39,321 tonnes in the corresponding period of previous fiscal.

According to the government, rising incomes may help more than double annual car sales to 3 million by 2015, which in turn will boost demand for NR. Prices in India reached a record last month on concern that the low output season in Southeast Asia will worsen a deficit.

India may allow imports of as much as 100,000 metric tonnes at a lower duty to meet surging demand for tyres. The trade ministry has recommended imports at a concessional rate for a maximum of 100,000 tonnes and tax changes on tyre imports. The finance ministry may make a decision after the end of the current session of parliament, which runs to 13th December, said trade secretary Rahul Khullar, in an interview.

Domestic production is not going to increase dramatically, demand is going through the roof because factories are being set up to make radial tyres. The pressure on prices will continue tight through next year, until you resolve the availability issue, Khullar said.

There will be imports in the coming years if there’s no fresh supply and the auto sector continues to do well.


Read lot more in Rubber4U – 15th December 2010 issue

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