India's natural rubber imports slow in May.

India's natural rubber imports rose 13 percent in May year-on-year to 18,419 tonnes, the state-run Rubber Board said on Monday, but this was less than in the previous month as it became cheaper to source the material locally.

Global prices of rubber rose in February, when contracts for May were signed, after the Thai government said it planned to start a market intervention scheme.

May imports slowed down compared with April, when shipments more than tripled.

However, imports are expected to jump in June as imported rubber is now 20 rupees cheaper than local prices, said George Valy, president of the Indian Rubber Dealers Federation.

The country's natural rubber production fell 2.8 percent to 58,000 tonnes in May, while consumption rose 3.6 percent on year to 83,000 tonnes, the statement said.

The landed cost for imported natural rubber is 180 rupees per kg, compared to domestic prices of 194 rupees.

The country's imports in the financial year ended in March rose to a record high of 205,433 tonnes, up over 9 percent. India imports natural rubber from Thailand, Indonesia, Malaysia and Vietnam.

Source : in.reuters.com