India's 2014/15 natural rubber imports to fall on record output.

KOCHI: India's imports of natural rubber are expected to fall by third in 2014/15 to about 200,000 tonnes, as tapping of newly planted trees likely boosts domestic production to a record high, a senior government official told Reuters.

A drop in imports by India, the world's fourth biggest producer, would put pressure on global prices that are sitting not far off multi-year lows.

"Trees planted in non-traditional growing areas are becoming ready for tapping. If weather remains normal, next year production can rise to 950,000 tonnes," Sheela Thomas, chairman of the Rubber Board said on Thursday on the sidelines of the India Rubber Meet. This would top 913,700 tonnes in 2012/13.

India's natural rubber imports are estimated to surge 38 per cent in the current 2013/14 year to 300,000 tonnes after production was disrupted by heavy rainfall during the June to September monsoon months.

The country's production in the first ten months of the 2013/14 April to March financial year fell by 9.4 per cent from a year ago period to 723,000 tonnes, despite a 2.8 per cent rise in tapping area, data compiled by the Board showed.

A sharp drop in rubber prices also contributed to squeezing production as some farmers curtailed tapping, Thomas said.

The spot price of the most-traded RSS-4 rubber (ribbed, smoked sheet) at India's Kottayam market fell to 14,200 rupees per 100 kg last month, the lowest level in nearly three years.

Indonesia's SIR20, usually the cheapest grade in Southeast Asia, was traded earlier this month at 85.00 to 85.50 US cents a pound ($1.87 to $1.88 a kg) for March/April delivery. The grade was last traded at similar prices in 2009.

Source : economictimes.indiatimes.com