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P Vinod Kumar
Kochi: The Rubber Board has urged procurement agencies to buy natural rubber at the reference price rate announced by the commerce ministry recently. This assumes significance as prices of the commodity have been ruling below the benchmark price for the last two months despite assurances by the central and state governments. Thus is the first time that the board has given an open call to procurement agencies regarding price.
The board is also firming up plans to enhance the use of natural rubber in construction of roads in the country. In the board's view, extensive use of natural rubber in the road-sector will increase the demand for the commodity significantly. The board has prepared a complete plan in this regard, which will be forwarded to the centre for its consideration.
Top sources in the Rubber Board told The Financial Express that in a recent meeting held in its Kottayam headquarters, the board has passed an unanimous resolution calling upon the procurement agencies to purchase naturalrubber from the market at the benchmark prices.
The commerce ministry has announced a reference rate of Rs 34.05 per kg for the superior RSS 4 grade.
The reference price fixed for the RSS-5 variety was Rs 33.55 per kg. However, the much awaited announcement of the reference rates has failed to lift rubber prices, which has been showing a steady declining trend since last year. The procurement agencies are mow buying natural rubber from the open market at the ruling market price.
It is found that, in view of the slackening of demand from the industrial sector, the market price has been showing a tendency to slip further especially after the beginning of the new season. According to the recent estimates by the Board, the demand will equal the supply scene only after in 2002-2003 only.
Sources said, the Rubber Board has also firmed an ambitious plan to stimulate demand for the commodity by increasing the use of natural rubber in road construction.
The board is believed to have scripted a detailedreport on the subject for the consideration of the central government.
The report is likely to be forwarded for the consideration of prime minister, ministry of surface transport and National Highway Authority of India soon. In the board's view, in the light of falling demand from the industry, the only way to stimulate demand is to enhance the use of the commodity in non-traditional sector's like road.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
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This story was printed from Net Express located at http://www.expressindia.com. Net Express provides a portal to India, with news from The Indian Express and The Financial Express along with sites on travel and tourism, the entertainment industry, the power sector, the environment and much more.
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