MARKET COMMENTARY
Overall market sentiments are jittery as the week’s session commences. Natural rubber prices in the international market on Monday on intensifying worries over Greece and China’s unprecedented move to prevent stock market crash. SHFE rubber futures slumped more than three per cent while TOCOM rubber futures were down by over one per cent.
Natural rubber stayed under pressure last week in the local market. Amidst worries over demand, sharp plunges in the major overseas market maintained downwards pressure on prices though limited supplies to the market and implementing of Rubber Production Incentive Scheme by the Kerala State government lend support.
MARKET NEWS
Based on the Kerala government’s price stabilization project, Kerala State Cooperative Rubber Marketing Federation has decided to procure 5000 tonnes of rubber in the first phase.
Kerala government has issued orders, framing the guidelines for the implementation of a ‘Rubber Production Incentive Scheme’, which guarantees a price of Rs 150 for a kilogram of rubber.
Rubber inventories in the warehouses monitored by SHFE rose 4.6 per cent on weekly basis to 153125tonnes.
Kerala State Chief Minister informed the Assembly that government would ensure that small-scale rubber growers with two hectares of land or less will get an assured price of Rs.150 a kg.A total of Rs 300 crore has been earmarked in the state budget for ensuring fair price for rubber which will be utilized for this new scheme.
Rubber Board has clarified that Kerala and Kanyakumari dist. Of Tamil Nadu would continue to receive subsidy for planting and replanting rubber.
Malaysia plans to use 10 per cent of its rubber supply in roads from 2016 as it looks to eat into excess supplies and shore up rubber prices.
Raising concern over the fall in rubber production for the third consecutive year, the tyre and rubber industries have sought urgent government intervention to stem the slide in domestic production.
Kerala will constitute a subcommittee to look into various issues related to rubber farmers. The committee’s aim is to see that the financial assistance provided by the Government reaches the farmers effectively.
Kerala FM says the central government has assured that the state has not been excluded from the rubber subsidy scheme and also added that the state has sought Rs.500 crore for the rubber procurement scheme announced by the state budget.
The United States imposed duties on certain automobile and light truck tires imported from China after finding they were being dumped at below-market value and unfairly subsidized by Beijing.
