Financial Daily from THE HINDU group of publications
Saturday, Sep 18, 2004
Agri-Biz & Commodities
UPASI urges Government to check decline in rubber prices
Coimbatore , Sept. 17
THE United Planters' Association of Southern India (UPASI) has sought immediate Government intervention for restoring port restrictions and export incentives for the natural rubber till parity in prices is established.
The Chairman of the UPASI Rubber Committee, Mr J.K. Thomas, while emphasising the need for formulation of a long-term policy in consultation with the industry stakeholders, said any setback in exports and larger imports would result in excess supply and an adverse impact on the price levels.
"In the interest of 10 lakh growers and 3.5 lakh workers, the Government should continue with export supportive measures and port restrictions," he said.
Prices for RSS 4 fell below Rs 50 per kg levels on September 15, which was 26.5 per cent lower when compared to the price realised in July.
But the fall in international price (RSS 3) during this period was only 7.8 per cent.
"The magnitude of the decline in domestic prices has resulted in divergence between the domestic and international prices. Currently, the domestic rubber price is lower than the international price by Rs 7.14 a kg. This is a matter of concern."
According to Mr Thomas, intervention measures like port restriction and export incentives were initiated with a larger conceptual objective.
"The port restriction was introduced in 2001 to check the sub-standard imports flooding the country. Export incentive was introduced to enable the country establish its credentials in international rubber markets."
These interventions have relevance even today, he said, adding that imports during April-August 2004 were up by 51 per cent at 30,221 tonnes compared to 20,020 tonnes during the corresponding period last year.
More Stories on : Rubber
Stories in this Section
The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |
Copyright © 2004, The
Hindu Business Line. Republication or redissemination of the contents of
this screen are expressly prohibited without the written consent of
The Hindu Business Line