Even before the Centre considered the All India Rubber Industries Association (Airia?s) demand for duty waiver in import of 1 lakh tonne of natural rubber (NR), rubber imports in the country are heading decisively northwards. While NR imports have nearly doubled, NR exports have slumped to a paltry one-fourth of last year?s volumes.
Import of NR has hit 51,756 tonne in the April-December period 2007, as per the statistical bulletin of the (December issue) Rubber Board. In the corresponding period in 2006, this was only 28,879 tonne. In October 2007 alone, the country imported 8181 tonne, almost seven times that of the 1349 tonne imported in October 2006.
Exports are also on. From 49,702 tonne in April-October 2006, NR exports have thinned to a quarter of its former self. In April-October 2007, NR exports were 17,829 tonne. Despite the production fall (by 6.4% in December) and rise (4.65%) in consumption, momentum in imports has pushed up the country?s NR stocks. The total stock as on December 31 was 1.93 lakh tonne, Rubber Board officials told FE.
Complaining of cost-push hitting the industry bottomline, both ATMA and Airia had sought that duty waivers be allowed on rubber imports. However, there is a slight dip in rubber prices in the last few days through pressure on commodity markets the world over.
In February and March, the Board forecasts production of 53,000 tonne and 48,000 tonne NR respectively.