?Natural rubber prices are likely to remain firm in the near future due to tight supply conditions,? Sajan Peter, chairman, Rubber Board, said at an annual conference of the United Planters Association of South India (UPASI) at Coonoor on Monday. ?Prices may remain in the comfort zone for producers, but they could see huge volatility due to speculative activity and fluctuation of the dollar,? he added.
?The impact of the slowdown in rubber planting during 1997-2003 has led to the present tight supply situation. But it is likely to improve with major producing countries focusing on replanting because of booming prices,? Peter said. The Rubber Board chairman also pointed out that Indian rubber prices were not ruling high when compared to international prices. ?In the ?80s, the average prices for Indian rubber ruled at a 50%-margin when compared to then international prices. In the ?90s the margins were reduced to 6%, and currently the prices are at a discount of 4%,? he said.
Regarding the Indian scenario, Sajan Peter said that during April -August of 2008-09, production has grown by 28.1% to 312,565 tonne when compared to the same period in the last fiscal of 2007-08. Consumption has increased by 6.8% to touch 371,460 tonne.