RUBBER OUTPUT GAINS PACE

After registering a fall in the first half of the current fiscal, rubber production seems to have improved in the main production centers. As per the present estimates, the total production for the year 207-08 is likely to be 8.35 lakh tonne, which would be just 2.1% lower than last year’s output level of 8,53,000 tonne.

 

Rubber production registered a fall in the first few months of the current fiscal due to the heavy and prolonged monsoon rains that Kerala, the main producing state, received. The outbreak affected rubber tappers had to stay away from work for months together.

 

The fall in the first six months of the current fiscal was of the order of 50,000 to 60,000 tonne. However, the production has registered substantial improvement in the subsequent months. The production was above 1 lakh tonnes in November and December period of the current fiscal, the production stood at 6,20,000 tonne compared to 6,62,000 tonne for the previous year. The shortfall was 42,000 tonne. The consumption for the year has been estimated at 8,57,000 lakh tonne, higher by almost 37,000 tonne as compared to last year’s level.

 

Meanwhile, rubber futures fell on higher stocks in warehouses and sluggish demand, analysts said. A weak Tokyo market and falling oil prices also dragged down the prices, they said. The demand was also sluggish as tyre makers have stayed away on hopes of a further price fall, said an analyst with a Delhi-based commodity brokerage. “The sentiment is bearish due to higher stocks… weak Tokyo markets and falling crude oil prices also pulled down the prices, “said Alex Mathews, and analyst with Geojit financial Services.

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