India’s September rubber imports tumble as tyre makers cut purchases

Thursday, 13 October 2011 00:17 - - {{hitsCtrl.values.hits}}

MUMBAI (Reuters): India’s September natural rubber imports tumbled 73 per cent to 9,099 tonnes, the State-run Rubber Board said in a statement on Tuesday, as a sharp drop in local prices and depreciation in rupee prompted tyre makers to cut overseas purchases.

The country’s production in September rose 3.5 per cent on year to 80,200 tonnes, while consumption fell eight per cent to 74,000 tonnes, it said.

The imports are likely to fall in October and production is likely to rise, industry officials said.

In September spot rubber prices in India were ruling below prices in Bangkok, Thailand, a key supplier to India, the Board data showed.

“Tyre makers are not importing. They are getting material at lower price in domestic market,” George Valy, president of the Indian Rubber Dealers’ Federation, told Reuters.

Weakness in Indian rupee, which lost 8.8 per cent in September quarter, has been making imports expensive, Valy said.

The imports by the world’s fourth biggest producer in April-September stood at 88,760 tonnes, down by a quarter on year.

“For the past 10-15 days weather was very good and farmers have accelerated tapping. Last year during October we had been getting heavy rains. So this year certainly October production would be higher than last year.”

The country’s April-Sept production rose to 391,400 tonnes compared to 375,250 tonnes a year ago.

India is likely to produce a record 902,000 tonnes for the year ending March on the back good monsoon rains, compared to 861,950 tonnes a year ago, the Board estimates.