May 3: The Central government's sudden decision to shelve the export plans and sell the procured rubber in the domestic market dampened the rubber prices in the primary commodity market here. The low key activity on the part of the State-owned procurement agencies only worsened the situation. During the week ended April 30, rubber prices had further declined its three-weeks stability and lost a further 25 ps per kg to close the week at Rs 25.75.Market sources here feel that with the new season around the corner the prices are set to crash further in the coming weeks. They said anticipating the STC's disposal of rubber to local exporters against the advance licencing scheme, no serious buyer is entering the market.
"Consumption by tyre manufacturers alone had declined significantly during the period", a source in the Rubber Board said. The market has now pinned its hope in state government to alleviate the agony of the growers. The state agricultural minister said that plans were afoot to ship nearly40,000 tonnes of rubber from the country.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
