SR production & consumption down

India’s natural rubber production registered a negative growth of 7.2% to 52,700 tonnes in April 2012, compared to 56,800 tonnes in April 2011. While consumption was 81,750 tonnes compared to 81,375 tonnes during April 11.

Import of natural rubber during April 2012 was 17,509 tonnes compared to 5,599 tonnes during April 2011. India exported 787 tonnes of natural rubber during April 2012 as against 2,214 tonnes in April 2011.

In April 2012, synthetic rubber production fell by 11% to 8,285 tonnes, when compared with 9,262 tonnes in April 2011. While its consumption declined by 5% to 35,150 tonnes in April 2012, compared to 36,890 tonnes in April 2011. During the month under review, consumption by the auto tyre industry also fell by 8% to 25,834 tonnes from 28,062 tonnes in the year-ago period.

Import of synthetic rubber declined by 5% to 26,420 tonnes in April 2012, from 27,868 tonnes in April 2011. The total stock of synthetic rubber in the country at the end of April 2012 stood at 49,880 tonnes.

Natural rubber prices slipped amid concerns over the euro zone debt crisis and falls to oil prices, pushing up demand for synthetic rubber which is made using crude.

On the back drop of gloomy picture of the country’s economy and sluggish growth outlook, Reserve Bank of India, presenting its monetary policy review on 31^st July, may not cut rates.