Rubber Board, India is expecting the country’s natural rubber (NR) exports to reach 5,000 tonnes for fiscal year 2016-17, with international prices ruling over domestic prices.
India’s natural rubber exports have been negligible since FY 2013-14 due to unattractive relative prices. In 2015-16, the total NR exports from the country were 865 tonnes. This fiscal, from April to October, the exports were 650 tonnes. However, shipments started gaining momentum from the second half of November with the spurt in international prices.
Hoping to raise domestic prices to the world market level, the board is keen on capitalising on the rise in the international natural rubber prices by promoting the export of NR from India. It has been promoting the brand Indian Natural Rubber for exports, by which the quality of rubber exported from the country is certified by the Board. For this fiscal year, 80% of the NR exports done so far were under this brand.
The price of natural rubber (NR) in India had been ruling high over international market prices since December 2013. This price gap between the Indian and international prices came down in the third quarter of 2016. From the second week of November 2016, the international prices of NR rose and are currently hovering at higher levels compared to Indian prices. The spurt in international rubber price was due to various factors including increased demand for rubber from China, upward trend in crude oil price, and appreciation of the US dollar.