NEWS

New Delhi: Natural rubber prices remained unchanged on Monday at record Rs.207.5 a kg in Kerala, despite the government's decision to cut import duty to 7.5 per cent to boost the domestic availability.

Last week, the government had cut import duty on natural rubber to 7.5 per cent from 20 per cent for shipments up to 40,000 tonnes till March 31, 2011, to boost domestic supply.

The natural rubber import after March 31, 2011 will attract duty of 20 per cent or Rs.20 a kg, whichever is lower. Natural rubber prices have been on the rise for the past few months due to disruption of production in Kerala, coupled with rally in international prices of the commodity.

The Rubber Dealers Federation said commodity prices in the domestic market could only decline in the event of cooling of international prices, which is also at record level.

“Prices of natural rubber in the domestic market are following global cues and the international prices are going up due to strong demand from China,” Indian Rubber Dealer Federation treasurer Ibrahim Jalal said.

He had said as long as international prices will remain at a high level, there would not be any reduction in the domestic prices of the commodity. According to information available on the Rubber Board's website, international prices may further go up to Rs.224.7 a kg on Monday's trade from the previous closing of Rs.223 a kg on Friday. India's production of natural rubber in 2010 is projected at 8.5 lakh tonnes.

— PTI