Posts Tagged ‘Malaysia’

Marginal Dip in December’s Rubber Production

Hello Friends here we come up with the Latest Agri Commodities updates from various parts of the country.

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Marginal Dip in December's Rubber Production

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Marginal dip in Dec rubber production:-

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Midway through the peak period, rubber production dipped marginally by 2 per cent to 98,000 tonnes in December against 1.00225 lakh tonnes last year.

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However, with industrial recovery firmly under way, rubber consumption remains robust, growing 17 per cent to 79,500 tonnes.

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Preliminary indications show severe slippage in Malaysia’s rubber production and India is likely to become the world’s third-largest producer of natural rubber after Thailand and Indonesia.

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In Other major Commodities Updates we can read that domestic pepper futures market continues to remain highly volatile and Sugar prices expected to remain higher in the coming month.

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Pepper futures continue to remain volatile:-

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The domestic pepper futures market continued to remain highly volatile because of the tug of war between the bulls and the bears.

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The prices were falling without any co-relation to the fundamentals.

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Spot prices fell from Rs 15,000 a quintal to Rs 13,700 in about a month.

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The reasons attributed included arrivals of the new crop, huge outstanding position in the January delivery and easing of other origins and so on.

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Around 1,200 tonnes of pepper would have its validity expired on Feb 5 and that is expected to be tendered for delivery and thus it might also enter the market.

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Sugar prices may remain firm in coming months:-

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Sugar prices are expected to remain higher in the coming months as lower acreage and poor rains will keep India’soutput at 15.3 million tonnes,

falling severely short of domestic consumption of about 23 million tonnes in the 2009/10 season.

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Note : For More Latest Industry, Stock Market and Economy News and Updates, please Click Here

RUBBER – STRETCHING & MOVING ON THE WAY AHEAD Final Part

Hello Friends here we come up with an extension of our previous blog, RUBBER – “STRETCHING & MOVING ON THE WAY AHEAD” Part 1

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RUBBER - STRETCHING & MOVING ON THE WAY AHEAD

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In previous Blog, we had touched upon the aspects like that of the investment scenario of rubber in India, price movement of the rubber in Indian market and gap in the demand and supply of the rubber in the market.

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Now in this part, we would look into the impact of the shortage of rubber industry on major industries and the scenario of the rubber production in other countries.

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IMPACT ON MAJOR INDUSTRIES:

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The acute shortages of rubber in the market & rising input cost have affected the tyre industry.

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The ticking demand from automobile industry is growing with days passing by, & the steep rise in raw material cost is exerting pressure on the companies to hike their product prices.

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Apollo has proposed a 5-10 per cent hike while JK Tyres may raise prices by 3-5 per cent.

The automobile firms are presently negotiating the price hike with the tyre companies.

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To curb this negative inflationary impact, the industry has asked permission for duty free import of one lakh tonnes.

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THE ELEVATION “Estimating the future”:

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Thailand & Indonesia accounting for over 60% of the global rubber production, have reported for a            9% & 6% fall in production this year.

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Also Malaysia output hit at 77,620 tonnes in November may pull other nations like China to make a aggressive buying from India.

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The country not confronting any shortage in the domestic market with higher relatively higher opening stock at 2.47 lakh tonnes by November-end is in a safer position as compared to other countries.

This is due to the higher import by the industry which was pegged at 1.32 lakh tonnes during the period.

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Estimating the future, in the lines of rise in domestic consumption by 3.5% as in this year  & export demand coming to the country with shortage in the major producing countries, the prices may ignite further.

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PLANNED LAYOUT “Paving the Way”:

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The government had decided to double the NR production in the country within a period of 10 years, with identifying & bringing around 4.5 lakh hectares of land under cultivation.

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The planned layout:

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1. To increase the acreage in the north-east by 26,200 hectares by 2011-12.

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2. Financial assistance to the tune of Rs 30,000 per hectare for fresh planting and re-planting activities in      these areas.

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3. Expenditure of Rs 23.47 crore for human resource development.

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4. Allocation of Rs 8.8 crore for research and development operations.

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5. An earmark of Rs 19.55 crore for assisting nursing of plantations, processing and marketing of rubber.

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6. Providing fencing to 25,000 hectares for rubber plantation and an additional 500 hectares with irrigation facilities during the eleventh five-year plan.

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7. In order to co-ordinate the development operations in the north-eastern states, an additional Rubber Production Commissioner exclusively for these area will be appointed.

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This was the final part of the topic RUBBER ………… “STRETCHING & MOVING ON THE WAY AHEAD”.

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Stay Tuned for more write ups in “Commodity Corner Series” on SMC Global Blog.

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Note : For More Latest Industry, Stock Market and Economy News and Updates, please Click Here