India’s natural rubber export has slumped to an unprecedented level at just 16 tonnes in June against 9,451 tonnes in the same month last year, as prices in the domestic market far exceeded global rates, according to state-run Rubber Board.
The overseas shipment of natural rubber has also shrunk and the country could export only 834 tonnes of the commodity since April, compared with 16,300 tonnes in the same period last fiscal.
“Domestic prices of the natural variety were ruling far above the international price, prompting large consumers to import more and making export a less profitable option. Lack of demand in the international market,too, dented the export,” a senior board official told PTI.
The wide gap in the domestic and global prices reflected duly in the import of natural rubber, which more than doubled to 15,000 tonnes in June from 6,948 tonnes a year before.
The gap in price is still growing. Natural rubber price stood at Rs 9,850 a quintal at Kottayam yesterday, while the rate of the RSS-3 variety of rubber was ruling at Rs 7,946 a quintal at SICOM in Singapore.
However, the consumption of natural rubber declined marginally to 72,000 tonnes last month from 74,060 tonnes a year before. Production, too, took a knock at 54,500 tonnes, compared with 62,200 tonnes in June 2008.