A drop in international rubber prices and rise in Indian imports are on the anvil as the the world’s largest exporter Thailand has recently given nod to release around 200,000 tonnes of stock pile. Industry analysts are of the view that this action is likely to force the Indian rubber imports to surpass 400,000 tones in this financial year.
Meanwhile, Vietnam, in a bid to bolster its rubber exports, has plans to slash its export tax from one percent to zero. The last time Vietnam reduced its export tax was in November, cutting a three per cent tax on centrifugal rubber and synthetic rubber to the current zero level. Vietnam’s tax cut will also result in the surge in Indian rubber imports.
India’s rubber imports stood at 325,190 tonnes in 2013-14 while it was 217,364 tones in 2012-13. According to the Rubber Board data, during the April-July period India imported 133,789 tonnes. This was 90,580 tonnes in the same period of FY14. In July, the imports were 36,997 tonnes.
India is the world’s fifth-largest natural rubber producer but its farmers have been worried over the declining prices prompted by imports. The tyre-makers, upbeat over the revival in auto industry, are buying more Natural Rubber from overseas markets.
The farmers are in distress and they urged the government many times to freeze the imports. But the government has ruled out possibilities of hiking import duty. According to Rubber Board data, the prices have fallen from Rs12800 to Rs12700 as on Monday.