C.J. Punnathara
Kochi, March 5
Even as rubber production continued to rise in the lean winter months of January and February, prices have soared to an all-time high. Surpassing the 2008 record price of Rs 142 per kg, the price in the Kerala market is at an all-time high of Rs 143.50.
Lured by record prices, farmers seemed to be unnecessarily extracting the maximum quantity possible, of natural rubber, during the lean season, which could undermine the long-term productivity of rubber trees, sources in the Rubber Board said. The tyre industry is largely keeping away from the market and arrivals have trickled down, even as the price is on an upward spiral.
“Where is the huge rubber stock that is supposed to be available in the domestic market?” asked Mr N. Radhakrishnan, former President of the Cochin Rubber Merchants Association. He said that either the figures regarding the huge stocks available were questionable or there was rampant hoarding. If it was hoarding, he said that the farmer, the trader or the industry was stocking rubber, expecting the prices rise to continue.
However, hoarding is not likely to last long since arrivals will pick up from the beginning of April. It is almost certain that both domestic and international prices will ease as arrivals increase after the lean winter months.
(thehindubusinessline.com)
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