Natural rubber production falls 12.9% in June

Adding to the supply crunch and scarcity woes in the domestic market, natural rubber production in June declined 12.9 per cent to 54,000 tonnes. This was mainly due to heavy monsoon showers that disrupted the tapping of the commodity across the state. The shortage also caused a steep rise in the price of various grades of rubber. The RSS-4 grade was today quoted at Rs 192 a kg, compared to Rs 182 a kg a week before. According to the latest Rubber Board data, the monthly output in June last year was 62,000 tonnes. According to growers, the production may be low in July, too, as tapping was hindered in most of the plantations, though rain-guards have been fitted on each tree. They told Business Standard that strong wind, followed by heavy rain, damaged rainguards. This may lead to a fall in production, said P M Jacob, a Piravom-based planter. In May, production was 59,000 tonnes. Cumulative production for first quarter (Q1) of FY14 was 166,000 tonnes, against 172,700 tonnes in Q1 FY13, a fall of 3.9 per cent. Normally monsoon season is good for tapping as cool atmosphere favours better yield. But heavy rainfall disrupted tapping and processing in all the producing centres of Kerala. According to the data, consumption also dropped in June to 82,000 tonnes, a fall of 1.2 per cent. In June last year, 83,930 tonnes of rubber were consumed. The increase in prices is a worry for the rubber manufacturing sectors, especially in small and medium segments. There is a widespread fall in the output of various rubber-based goods. In Q1, total consumption is estimated to be 247,000 tonnes, against 251,370 tonnes in Q1 FY13, noting a decrease of 1.7 per cent. During April-June period, 55,000 tonnes were imported, compared to 59,119 tonnes and export was 1,755 tonnes as against 3,025 tonnes in April-June period of 2012-13. According to the Rubber Board, as on June 30, total stock of the commodity is 225,000 tonnes. This was 221,000 tonnes in June 2012. Industry bodies like the Automotive Tyre Manufacturers' Association refute this, saying if such a huge stock was there, the market would not have been facing such a serious shortage.