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Rubber prices soar on supply crunch

Aravindan

KOTTAYAM, May 20

RUBBER prices are soaring after a period of continuous decline and the market is now reported to be more vibrant. The prices have risen so suddenly from around Rs 25 per kg during the second fortnight of April to nearly Rs 34 during the first fortnight o f May owing to supply crunch and not based on sudden demand thrust.

Though may factors have been attributed to as the reasons for this, informed sources say that the shortage of the material has influenced the market forces which keep the prices high.

They also contend that if the stock as claimed by the Rubber Board was available in the country there should not be any shortage of rubber in the market. As per the statistics compiled by the board, the estimated stock as on March 31, 2001 is 1,71,200 to nnes of rubber.

Even ungraded rubber available in plenty was in shortage. Major buyers and dealers held the view that the statistics prepared by the Rubber Board was not accurate and the stock position shown was based on inflated figures. Had there been enough stock, th ere should not have been the scarcity now, especially for graded sheets of rubber, they said.

After recording Rs 34 per kg for RSS 4 in forward trading the price had slightly declined to Rs 33 mainly as the major buyers had temporarily withdrawn from the market. Though their quotation was for purchase of rubber at Rs 32.50 per kg, rubber was not available at this rate.

Traders who had to fulfil price-selling commitments offered up to Rs 33.50 for RSS-4. Trading circles hoped that the present shortage might push up the market further.