Goa, Maharashtra: As and when Natural Rubber stretches limbs in India

Last Updated : 17 October 2012 at 19:00 IST

While Kerala is touted as the home country of natural rubber in India, cultivation is fast catching up in other parts of the country as well, especially Maharashtra and Goa.

In Maharashtra, natural rubber plantations exist in the following districts in the descending order of their acreage:

1. Sindhudurga
2. Ratnagiri
3. Thane
4. Raigad

Natural rubber plantations are spread across 858 hectares in Maharashtra. Since the land prices are relatively cheap, there is an uptrend visible in activities related to plantation expansion.

Of the 858 hectares, around 110 hectares are under tapping. The yield is to the tune of 1600kg/hectare/year even as the national average stands at 1850 kg/hectare/year.

“There are certain rare plantations where yields stand at 2000/kg/ha/year in Maharashtra.” a Rubber Board official in Goa said. “In Kerala too there is a plantation that yields 4000 kg/hectare/year.” he added. They are thoroughly scientific in their approach, he said.

Plantations in non-traditional areas like Maharashtra and Goa get subsidy to the tune of Rs.30000/hectare for 20 hectares of plantation. In Kerala the subsidy is to the tune of Rs.19500/ two hectares; the plantation should not exceed 12 hectares. This information is as per the 11th plan.

In Goa, natural rubber plantations exist in 1017 hectares of which 40% of the area is under tapping which means about 300-400 hectares yield rubber. In Goa, given the fact that trees are relatively old, 1400 kg/hectare/year in natural rubber is gathered on an average basis.

“With mining gaining appeal and restrictions galore regarding cutting down of trees, no new plantations are springing up.” the official informed.

There is demand for contract tapping but the locals here are interested in only in a daily-wage arrangement in collecting their remuneration. Skilled local tappers are rare here, the official added.

During season, only about 70 days witness tapping here in Goa when compared to 100-120 days elsewhere, the official observed.

As published in: http://www.commodityonline.com/news/goa-maharashtra-as-and-when-natural-rubber-stretches-limbs-in-india-50924-3-50925.html

India Natural Rubber: Mixed trend in spot; bullish in futures

Last Updated : 10 October 2012 at 09:10 IST
KOTTAYAM (Commodity Online): India natural rubber witnessed mixed trend in spot markets and bullish trend in futures on Tuesday.

RSS 4 variety of natural rubber was traded at the rate of Rs.191/Kg even as RSS 5 was seen trading at Rs.187/Kg. Ungraded rubber was traded for Rs.180/Kg.

There have been no rains and tyre companies are not participating in trade, sources said.

“Still information suggests that they purchase natural rubber in anonymity. They don't give much of publicity in this regard. Given that prices are ruling low in natural rubber in the international markets, there have been no exports happening.” a trader informed.

Meanwhile, in the spot markets on Monday, RSS 4 variety was traded at the rate of Rs.192-193/Kg and RSS 5 variety at Rs.187/Kg. Spot close price-- the price according to close of trade that is carried out at the fag end of the day; at 6.00 pm or after-- ruled at Rs.190/Kg and Rs.186/Kg on Monday. The overall trend had been bearish in spot for that day.

Tuesday Futures

Rubber futures on the NMCE opened at Rs.18140, touched a high of Rs.18796, a low of Rs.18410 and closed at Rs.18249. Meanwhile, NMCE natural rubber ware house stocks as on Monday is estimated at 7 tons.

“Some buying in natural rubber futures may occur in coming sessions. From current levels, Rs.18150 looks good support for the week while Rs.19200 is the resistance for the same. Trend appears to be bullish in futures.” our in-house analysts said.

Global trends

Natural rubber prices witnessed mixed trends in global market as weak crude oil prices dampened market sentiments while supply curbs by leading producers, Thailand, Indonesia and Malaysia continues to provide positive support to prices.

At Tokyo Commodity Exchange, benchmark March contractrose 3.7 Yen in day session to 273.8 Yen per kg but fell back to 271.6 Yen per kg as International Monetary Fund (IMF) lowered forecast for economic growth.

US WTI crude oil futures remained weak at $89 levels which is not supportive of natural rubber.

In India rains have weakened in the key growing region of Kerala state in south India and production has intensified while tyre sector is not an active buyer in the market due to prevailing Rs 15-20 per kg price differential between Indian and global prices.

As published in: http://www.commodityonline.com/news/india-natural-rubber-mixed-trend-in-spot;-bullish-in-futures-50786-3-50787.html