Price of rubber shoots up

Mathew A Thomas

First Published : 14 Mar 2010 02:08:03 AM IST

Last Updated : 14 Mar 2010 06:54:05 AM IST

PREDICTIONS and market indicators came true on Saturday on a steep rise in rubber price levels in the current offseason, with prices shooting up to an alltime record of Rs 150 a kg for RSS-4 though a rupee was lost while transactions were closed for the day.

The magic figure was beckoning the market for the past few dys ever since the price broke the earlier record of Rs 142.50 on March 1. Incidentally, Indian prices have come on a par with international rates now.

The price is expected to boom again in the coming days, given the extreme hot climate and delay in summer showers, leading to long gestation for re-start of tapping after the annual leaf fall season this time. That the commodity is in short supply in various international markets is also influencing the domestic prices, according to market sources.

Since there is no lull in the automotive sector in India and countries like China, Japan and the US are also placing heavy orders to lift available stocks from world market centres, Indian consuming industries are positioned on a weak wicket now with regard to sourcing of basic raw material stocks.

High price for the produce in international markets is also a damper for Indian industries, even to look at imports through the duty-free Advanced General Licence route.

(expressbuzz.com)