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Tyre makers asks for Govt help to control rubber prices |
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The Automotive Tyre Manufacturers Association (ATMA) has sought for immediate government intervention troubled by the increase in speculative activity in natural rubber futures trading.
It is a matter of concern that despite no major change in fundamentals of demand and supply, domestic natural rubber price has increased from Rs 70 a kg on March 1 to Rs 95 on April 9, an increase of 36 per cent in just about a month`s time.
The needless increase of natural rubber price has also led to tightness on the supply side. The current supply situation is also inconsistent with the encouraging stock level of over two lakh tonnes of natural rubber, as reported by the Rubber Board.
In a release, Mr. Rajiv Budhiraja, Director General, ATMA, said that international rubber availability is good and with global prices ruling at much lower levels (currently at Rs 82.5 a kg), the domestic tyre industry has stepped up its import volumes.
He said, "This is yet another spell wherein the interests of domestic rubber growers and consumers are being side-stepped by the intermediaries with a view to making short-term speculative gains." He added that large volume of rubber imports is bound to depress the domestic demand for rubber in the near future.
The ATMA delegation would also meet the Rubber Board Chairman and apprise him of the concerns of the tyre industry and seek the Board`s intervention to restore normalcy by isolating the speculative interests and ensuring adequate and timely availability of natural rubber for domestic consumers.
As an immediate step, ATMA has sought reduction in intra-duty limits for futures trading in natural rubber to be confined to two per cent in comparison to the existing enhanced limit to 4 per cent.
It has further urged that at volatile times like this, futures trading in NR should be temporarily suspended to bring some balance and discipline in the market, which is imperative in the long-term interest of NR growing and consuming interests alike.
(Posted on : 14/04/2009)
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| Tyre makers asks for Govt help to control rubber prices |
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