Market and product
Global Rubber prices dwindling, glut scare looming large
Alarmed by the oversupply , Thailand, the world's biggest Rubber exporter, had asked its Rubber farmers to switch to other crops. And Thai Rubber growers urged the government to slash the tax or collect the levy at a flat rate manage their costs and offer rubber at more competitive prices.
International Rubber Study Group has predicted in a new report that Rubber production will outpace demand by 202,000 metric tons from 371,000 tons in 2014 and 650,000 tons last year. They foresee a slow down in Rubber tree tapping owing to the declining prices. Responding to the declining prices, farmers are showing less enthusiasm for rubber tapping, the group said.
India, the world's fifth-largest natural rubber producer, is worried over the declining prices prompted by imports. The tyre-makers, upbeat over the revival in auto industry, are buying more Natural Rubber from overseas markets.
The farmers are in distress and they urged the government may times to freeze the imports. But the government has ruled out possibilities of hiking import duty. According to Rubber Board data, the prices have fallen from Rs.13050 to Rs13000 as on Monday.
