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The Rubber Board has urged tyre manufacturers to resume domestic purchases of natural rubber (NR) at the earliest and support growers and dealers from further losses and stabilising market prices.
Expressing concern over the current market situation, M Vasanthagesan, Executive Director, said NR prices have been declining since May despite increase in production and consumption during April–June. When the government is working towards improving farmers’ income, any irrational fall in rubber prices cannot be justified, he said.
He was speaking at a meeting held with consumers to address the volatility in domestic natural rubber prices. Representatives of major tyre manufacturing companies and the Indian Rubber Dealers Federation attended. The meeting took stock of major issues in the current market and discussed probable strategies for containing the fall in rubber prices.
Piling stocks
The representatives of tyre companies expressed their concern over the shortage in the supply of natural rubber during the April-May period, which compelled them to proceed with imports to bridge the domestic market shortage.
IRDF representatives voiced concern over the absence of active buying by major consumers, which led to the piling of rubber stock with dealers and financial losses incurred by them. As the peak production period is fast approaching, IRDF requested tyre companies to resume lifting pending orders urgently so that they can proceed with fresh purchases.
During April-June, India’s total rubber production and consumption were 1,39,000 tonnes and 3,57,000 tonnes, respectively. Total rubber imports during April-June 2023 were 1,18,813 tonnes, which is lower by 4 per cent than the previous year.
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