Puttur: Rubber market on right path of rejuvenation


Daijiworld Media Network - Puttur (SP)

Puttur, Oct 23: The rubber prices had remained static for the last six months. The prices have shown some signs of recovery since the first week of October. Since a year, import of rubber from foreign countries has been curtailed as a result of which the rubber stocks in India are getting depleted. As a result, automatically, the demand for rubber is on the rise.

After learning from experience that the price of the rubber produced by them was less than the money they spent on maintenance and management, many growers had opted to allow their rubber plantations untouched without undertaking rubber tapping operations. As a result, rubber production dwindled. Even though the state government, with the financial support from the central government, had planned to announce support price for rubber, it has not yet been implemented. As per the International Rubber Tripartite Council agreement of February last year, Indonesia, Malaysia and Thailand had agreed to cut down rubber exports to India. At that time, with an eye on making a profit in the future, many companies had stocked rubber.

After strict action was taken by India to cut down rubber import, Indian godowns were full of synthetic rubber and the rubber imported from Indonesia, Malaysia and Thailand. Production of the tyre and other rubber products suffered during the lockdown period. The production is shooting up now, and foreign rubber stock is getting exhausted.

Out of the 12 lac metric tonnes of rubber produced in India, Karnataka's share is 40,000 metric tonnes. But since the last two years, because of tapping expenses and shortage of skilled tappers, many growers had turned away from rubber production. Rubber price has been volatile since the beginning of 2019. As a result of the shortage, the price has shown some increase now. Now, synthetic rubber import has been restricted, as a result of which indigenous rubber is getting demand.

Rubber prices stood between Rs 127 to 130 for rubber RSS 4 by January 2020 while RSS 5 commanded price between Rs 118 to 123. In February, the prices came down to 127 to 128 in respect of RSS 4 and Rs 118 to 120 for RSS 5. After March, most of the rubber processing units were closed. In August they opened and by October 1, the price of Rs 4 rubber touched Rs 130 while RSS 5 was traded at Rs 124. The rate remained steady till a little increase on Thursday to Rs 141 in respect of RSS 4 and Rs 135 for RSS 5. Lots were sold at Rs 119, scrap 1 for Rs 79 and scrap 2 for Rs 71.

Areca nut: There have not been any changes in the areca nut price. Newly harvested areca not is priced at Rs 330, new areca nut (single chol) Rs 400, old areca nut (double chol) Rs 410, while in the open market new areca nut fetches between Rs 325 and 335 per kg. Coconut is sold at Rs 24 to 26 a kg for small size, medium Rs 28 to 29 a kg while bigger ones are Rs 30 to 35 a kg. Copra is priced at Rs 90 per kg while black pepper is priced between 330 to 33. Cocoa is traded at Rs 45.

Col S Sharath Bhandary of Akhil Karnataka Rubber Growers Association, says that rubber-producing companies have not opened due to lockdown and import of rubber has been stopped. As rubber stock has depleted in India, local rubber is getting demand, he analysed.

 

  

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