IGI Logo

Natural rubber

Natural rubber in the Indian market hit its highest level in eight years before ending last week's session down. Apart from the cues from the overseas market, improvement in weather, expectation of rise in arrivals in coming days weighed on. In the overseas market, natural rubber prices were under pressure. Amidst lingering worries over spread of delta variant of corona virus and economic growth, lacklustre economic data from China weighed on overall market sentiments. However, prospects of stimulus from China improved sentiments.

Rubber inventories in warehouses monitored by the Shanghai Futures Exchange rose by 2.6 per cent to 225354 tonnes on week-on-week basis according to the data released by the exchange last Friday.

According to the Association of Natural Rubber Producing Countries (ANRPC), based on the preliminary estimates from member countries, the outlook of natural rubber (NR) production in 2021 trimmed down to 13.782 million tonnes following a downward estimate for Malaysia’s production by 30,000 tonnes. Signs of recovery observed in major economies as the containment measures eased, this has led to an anticipated world demand of NR of 13.900 million tonnes, up 7.2% growth from previous year when the world was first hit by the pandemic. According to the Rubber Board, natural rubber production increased to 7.15 lakh tonnes (lt) compared with 7.12 lt in 2019-20. The rise came after the production in the first quarter dropped by 41,000 tonnes to 82,000 tonnes (1.23 lakh tonnes). Natural rubber consumption declined to 10.96 lt against 11.34 lt in 2019-20

The Northeast Frontier Railway (NFR) has commenced the transportation of rubber sheets and products as a new stream of goods traffic from Tripura to various destinations. Eventually, substantial production of rubber sheets takes place in Tripura. According to reports, more than 90,000 tonnes of rubber is produced annually in Tripura, having about 87000 hectares of rubber plantation. Tripura exported more than 53000 tonnes of rubber during the financial year 2020-21 to places like Jalandhar, Ludhiana and Delhi.

In a major initiative to prepare a comprehensive database on natural rubber sector, right from the total areas of cultivation to the details of rubber tappers, Rubber Board is conducting the first ever nationwide census. The census to be conducted by using a mobile application will begin with the data collection in Kottayam soon.

With a view to minimising the impact of landslips on the natural rubber plantations, the Rubber Board is all set to unveil a Web portal classifying the rubber plantations across the State based on their susceptibility to landslips. The classification, according to officials, will help the agency recommend adoption of suitable agricultural practices and cultural operations to each plantation, based on its vulnerability.

India is estimated to import around 35,000 ton of natural rubber in June compared with 30,000 ton in May, the Association of Natural Rubber Producing Countries said. In April, however, imports of the commodity stood at 44,000 ton.

Cambodia exported $99.87 million of natural rubber from January to April this year, according to the country’s Ministry of Agriculture, Forestry and Fisheries. In total, 61,056 tonnes of natural rubber were exported over the four months. Rubber export revenues increased by 2.5 percent over the same period in 2020 ($97.43 million) according to the ministry.

Malaysia’s natural rubber production increased to 22.4 per cent to 28,164 tonnes in May 2021 compared to 23,013 tonnes in the previous month, said

To Read Complete Report & Disclaimer Click Here

For More Geojit Financial Services Ltd Disclaimer https://www.geojit.com/disclaimer 
SEBI Registration Number: INH200000345

Views express by all participants are for information & academic purpose only. Kindly read disclaimer before referring below views. Click Here For Disclaimer