India's natural rubber imports in June jumped 60 percent on year to 19,118 tonnes as tyre makers raised overseas purchases to cash in on lower prices in other Asian countries, and the trend is likely to continue in coming months also as rubber is still expensive in the country.
Rubber production in June rose 4.1 percent on year to 59,200 tonnes, while consumption of rubber in the month rose to 80,500 tonnes, from 74,450 tonnes in the year earlier period, the state-run Rubber Board said on Friday. "Imports rose because of reduction in the import duty and lower prices in Thailand and Indonesia," George Valy, president of The Indian Rubber Dealers Federation, told Reuters.
India in December 2010 cut import duty on natural rubber to 20 rupees per kg, from 20 percent earlier. "For next two-three months higher imports trend is likely to continue. Block rubber is cheaper in the international market," he said. On Thursday, price of the most traded RSS-4 rubber (ribbed, smoked sheet) in the key Kottayam market in India was 21,350 rupees per 100 kg, while it was 21,104 rupees in Bangkok, Thailand, data with Rubber Board showed. Imports in April-June period stood at 41,929 tonnes, up 9.7 percent on year, while production during the period rose by 5.4 percent to 175,700 tonnes.
India, the world's fourth biggest producer, imports natural rubber from Thailand, Indonesia, Malaysia and Vietnam. "In July Kerala usually gets heavy rainfall, but this year it is not getting heavy rains. Rainfall is there, but it is not heavy. It is allowing farmers to do tapping," Valy said.
The southern state of Kerala is the biggest producer in India. The country's production for the current financial year ending in March 2012 is estimated at 902,000 tonnes and consumption at 977,000 tonnes. Key global natural rubber production was forecast at 9.96 million tonnes in 2011, slightly higher than a previous estimate of 9.94 million tonnes on an upward output revision by the second-largest producer Indonesia, industry group ANRPC said last month.