Natural rubber prices declined in the primary market in Kochi during the week ended June 12 following a slowing down of procurement activity by the interventionist agencies.Dealers expect prices to decline further to Rs 32-33 level during this week.Rubber prices witnessed a sharp fall from a high of Rs 36.25 per kg for RSS 3 on last Monday to Rs 34.25 per kg on Friday. Dealers attributed the fall to the delay in declaring new bench mark price for natural rubber by the union commerce ministry.
"The market was expecting the new floor price along with union budget", a dealer said.
However, it is learnt that the government is likely to put off the announcement of a new floor price till the State Trading Corporation completes its procurement drive.
STC has been asked by the government to procure 20,000 tonnes of rubber in a bid to shore up prices.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
