While addressing the 167th meeting of the
Rubber Board at the Rubber Research Institute of India (RRII) today at Kottayam,
the Rubber Board Chairperson, Sheela Thomas said "there would not be much
fluctuation in the natural rubber price, even though many of the major rubber
consuming nations were still under the shadow of economic uncertainties. Recovery
in advanced countries is expected to begin only in the second half of 2012. World
natural rubber supply would decline due to wintering and dry season in major
rubber growing regions and tightness would continue irrespective of decline in
demand".
On 24th January, Thai government
approved a 15 billion baht budget to buy unsmoked sheet (USS3) from farmers at
120 baht per kg to prop up rubber prices and the intervention scheme to shore
up prices is expected to start in mid-February after the formation of committee
to oversee the scheme and several legislative process to be completed.
Till 23rd January, the domestic
price was higher than the international prices. The Thai government’s decision
to intervene in the market to bail out growers had triggered a spurt in
international prices. This change may trigger a rise in export from India. Currently
320% increase was recorded in rubber exports during April-December 2011. On the
other hand, import of natural rubber will be low, due to rise in international
prices, making overseas buying expensive. In future only import will be which was
ordered in December and also due shortage in supply, if so.
Read
lot more in the latest issue of Rubber4U
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