Ahead of Christmas, natural rubber prices have jumped to a new high at Rs. 207.50 per kg at Kottayam on concerns over supply situation which has fuelled the price rise and also a spurt in the international prices, which is currently at Rs. 222.58 per kg.
Trade sources said that usually prices rally ahead of Christmas and it is estimated that going by the current demand-supply situation, the price could zoom even to Rs 222 per kg.
Natural rubber prices are moving in a northward direction for the past few months due to continuous rain in Kerala, which adversely affected tapping. On the other hand rubber prices have gone up in the international market due to increase in demand from China.
According to a government statement on 23rd December, import duty on natural rubber has been cut to 7.5% for shipments up to 40,000 tonnes until 31st March 2011. The duty will be reinstated at whichever is the lower of 20% or Rs20 per kg after that date.
India has imported 143,468 tonnes of natural rubber during April-November 2010, up just 3% on a year ago.
Tyre makers had been demanding the cut in natural rubber duty for over a year as they were struggling to pass on the rise in the natural rubber price to end users.
Despite trading at a record high natural rubber is cheaper in the domestic market and the import duty cut is unlikely to prompt the user industry to sign fresh imports deals.
Read lot more in Rubber4U – 1st January 2011 issue
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