NEW DELHI-headquartered Automotive Tyre Manufacturers’ Association (ATMA) urged the Rubber Board to help resolve scarcity of natural rubber supply in the domestic market.
Supply of NR , especially the SNR (Indian Standard Natural Rubber) grade, tightens as the lean season for tapping approaches.
ATMA conveyed to the India Rubber Board that growers cannot cope supplying the dealers, hence the limited quantities if NR .
Moreover, domestic NR prices have risen, and are higher than the international prices. The current domestic price is pegged ar Rs 162 per kg, whilst international prices are lower at Rs 157 and Rs 146 for SMR 20 (Standard Malaysian Rubber) grade.
“Normally, when the price trend is rising, growers tend to hold on to the commodity in the hope of fetching still higher prices leading to supply side constraints. Unfortunately, that leaves the rubber consumers with no other option but to contract imports,” said Rajiv Budhraja, Director General of ATMA.
The association has observed an erratic supply in NR despite a high quantity of stock in the country (about 300,000 tonnes) as claimed by the Rubber Board. Of the NR stock, the growers have a record 133,000 metric tonnes in January 2013, which is 35% higher than the January 2012 stock of 98,000 tonnes.
Stock with tyre manufacturing units is 52,000 metric tonnes, which will sustain only 30 days production, ATMA added.