'Current rubber price trend harmful to small growers' Record production likely this year
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The rubber market, subjected to severe technical corrections, continues its downtrend unabated, even going below Rs 100 a kg amidst reports that there would be record production this year, with 8,75,000 tonnes of rubber as against 8,25,000 tonnes last year. Prof K.K Abraham, a spokesman of the small holding sector, feels the current trend is detrimental to the interest of the small holding community.
The small holders are jubilant following the resumption of tapping in Kerala. Though it is too sunny, the cold conditions prevailing at night are favourable for a good harvest. The growers have spared no efforts to stick to timely calendar of operations and fertiliser applications.
Board chairman's appeal
The appeal by Mr Sajen Peter, Chairman, Rubber Board, to divert from latex to sheet rubber, has had good results as the small holding sector is aware of the benefits of such a move. The manufacturing community also expects quality sheets once the season gets into full swing in November-December. The north Indian small manufacturers and the small units in Kerala had drastically reduced their offtake due to the high prices of quality sheets. The sheets fetched a record price of Rs 142 a kg, also which proved to be beyond the purchasing capacity of the small manufacturers.
Most of the small units tried to overcome the situation through a corresponding reduction in their output. The present declining trend in prices would encourage them to go in for fresh purchases. In view of the current trends, no definitive forecast seems possible except that there would not be any shortage of material in the foreseeable future.
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Source : Business Line |
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