Nation Other News 16 Dec 2016 Demonetisation: No r ...

Demonetisation: No relief for rubber market

DECCAN CHRONICLE. | K P SETHUNATH
Published Dec 16, 2016, 1:51 am IST
Updated Dec 16, 2016, 6:39 am IST
Spurt in global prices fails to cheer domestic farmers.
Rubber
 Rubber

KOCHI: The domestic rubber market reeling under the impact of demonetisation has not gained anything from the rise in the prices in the international market which have hit a three-year high. The tight supply-demand situation, expectations of further firming up of crude oil prices and buoyant demand from China have helped in scaling up the prices in the global markets. The production lagging behind consumption in the region of Association of Natural Rubber Producing Countries (ANRPC), accounting for nearly 90 per cent of global natural rubber output, is expected to keep the price firm in global markets.

According to the report released by ANRPC on December 7, the rubber output in 2016 (Jan-Dec) would register a marginal increase of 0.1 per cent to 11.08 million tonne compared with 11.07 million tonne in 2015. The natural rubber consumption in the ANRPC region, accounting for 65 per cent of the total natural consumption, was projected to increase by 4.1 per cent to 8.02 million tonnes in 2016 (Jan-Dec) from 7.70 million tonnes in 2015. The tight supply situation in the ANRPC region received a further boost on Wednesday with reports about an increase in demand from China triggered by high automobile sales.

 

The vehicle sales in China in November moved up by 16.6 per cent compared with the same period in the previous year, say reports. But all these developments in the global market have failed to make much impact on the domestic market. “The rubber market, already in the doldrums due to factors like fall in price and collapse of a few prominent rubber marketing societies, has been dealt a severe blow by demonetisation,” said Mr K.C. Joseph, president, action council of Pala Marketing Cooperative Society.

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Location: India, Kerala




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