Friday, September 6, 2013

Protest to hurt supply


Though there is sluggish demand prevailing in the economy for automobiles, tyre production is expected to reach almost 20 crores units by 2016-17.

Rubber farmers have held protests in Thailand’s south to pressure the government to subsidize prices. Thai cabinet approved proposals from the rubber policy committee to help subsidize production costs for small rubber growers. Thailand will temporarily scrap a tax on rubber exports to support fallen prices, a move aimed at appeasing angry rubber farmers. Thailand governments attempt to calm down angry rubber growers failed, prompting thousands of growers and tappers to continue their protests now in their second week.

Rubber traded near the highest level in more than three months amid speculation protests by Thailand farmers, which may disrupt exports from the country.

At Kottayam, RSS4 grade closed at `.186.50 a kg. RSS3 grade closed at `.178.19 a kg at Bangkok, while Malaysian SMR20 closed at `.162.27 a kg. On the Tokyo Commodity Exchange, September futures series closed at ¥270 a kg, October at ¥271, November at ¥273, December at ¥276.6, January 2014 at ¥279.1 and the contract for delivery in February 2014 closed at ¥282.7 a kg. While on the National Multi Commodity Exchange September futures closed at `.187.19 a kg, October at `.186.48, November at `.187.40 and December at `.189.27 a kg.

On the sidelines of Asian Latex Conference held at Ramada Resort in Kochi, Jay Nambiar, CEO of Hevea-Tech Pvt. Ltd., Kuala Lumpur, said Kerala should find urgent techniques for reducing the dependence on labour for harvesting the rubber latex. It should either mechanise the harvesting method or should improve on the existing method. The growth of synthetic rubber market wouldn't affect the country's natural rubber market as 90% of the products are a blend of these two grades.

Read lot more in Rubber4U – 15th September 2013 issue

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