Centre has promised Kerala that it will peg
import duty on rubber at 20% in view of the states concern over crash in prices
of the domestic produce. The current rate of import duty on rubber is `.20
a kg or 20%, whichever is lower. This was fixed when the domestic rubber prices
were soaring. The natural rubber growers are now hit by crash in price with the
industrial users importing huge quantities from abroad. This scenario could be
overcome to an extent by enhancing the import duty, said Kerala Chief Minister
Oommen Chandy.
The natural rubber prices in the local market
have fallen to `.157 per kg, (as on 28.02.2013) nearly 17% since 29th
February 2012, when price of RSS4 grade was at `.188.50 per kg, due
to slowdown in economy and also on sluggish demand. Union Commerce Ministry had
already forwarded this proposal to Finance Ministry for clearance.
Today, the contract for delivery in August
advanced as much as 2.4% to ¥298.9 a kg and closed at ¥298.5 a kg on the Tokyo
Commodity Exchange and it is expected to trade above ¥300 a kg on Monday. RSS4
grade rubber in India closed with a positive note at `.160.50
a kg and the price of RSS3 grade closed at `.166.02 per kg at
Bangkok. While Malaysian SMR 20, closed at `.157.87 a kg. On the
Tokyo Commodity Exchange, March futures series closed at ¥279.9 per kg.
Read
lot more in Rubber4U – 15th March 2013 issue
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