CALCUTTA, Nov 23: Falling international prices of natural rubber have had a severe impact on domestic prices and the ruling market price of Rs 32 per kg ex-Kottayam (as of November 10, 1997) is almost 60 per lower than the average price of Rs 49 per kg for RSS 4 grade in 1996-97, according to industry sources.

On the other hand, taking into account an estimated export of 2000 tonnes and net import of 14,000 tonnes in 1997-98, the rubber industry expects a shortfall of 2000 tonnes in natural rubber availability.

The Rubber Board has projected natural rubber production and consumption in 1997-98 at 5.85 lakh tonnes and 6.19 lakh tonnes respectively. This leaves a shortfall of 34,000 tonnes, out of which imports under advance licence would be about 16,000 tonnes. According to industry estimates, rubber consumption (including natural, synthetic and reclaim rubbers) in 1996-97 increased to 771,160 tonnes from 725,325 tonnes in the previous year. The consumption pattern maintained the historial ratio of 40:60 in the tyre and non-tyre sectors.

The break-up of consumption in the non-tyre sector shows that 105,000 went into cycle tyre and tubes, 89,000 tonnes in footwear, 51,000 tonnes in belts and hoses, 45,250 tonnes in camel back, 30,000 tonnes in latex foam, 26,000 tonnes in dipped goods, 15,300 tonnes in battery boxes, 4,000 tonnes in cables and wires and 52,810 tonnes in other products.

In 1996-97, production of cycle tyres and tubes remained static although output of car tubes increased by 18 per cent. In the non-tyre segment, conveyor belts, V/fan belts, rubber hoses and contraceptives accounted for an increase of 23,000 tonnes of rubber consumption. Provisional export figures for 1996-97 released by Capexil show that total exports of rubber goods were at Rs 1216.8 crore against a target of Rs 1280 crore. However, compared to exports in 1995-96 the growth was 20 per cent. In synthetic rubber, production declined by 4000 tonnes to 64,000 tonnes while consumption increased to 143,000 tonnes.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.