Natural Rubber Prices
SMEs hit by sharp rise in rubber prices
SMEs across India that use rubber as raw material, are facing a threat to their livelihood, due to the sharp rise in Natural Rubber prices in recent months.
"Soaring prices of natural rubber is detrimental to the interests of small-scale units, as it leads to an increase in the total cost of production, leaving them little choice but to stop production temporarily " said Thomas Joseph, an agronomist with the Rubber Board, Kottayam, Kerala.
According to official sources, a large number of rubber companies SMEs Kerala and Punjab have been forced to close their units, while many are on the verge of closing because they can not cope with the assessment of input costs.
With rubber prices have increased by almost 25% over the past four months, the units of small scale manufacturing are in a difficult situation because it can not risk losing their competitiveness by increasing their prices on a weekly basis in line with the increase in rubber prices.
"Spiral of natural rubber prices has led to the reduction of raw material extraction in the SME market. In addition to artificial rise in rubber prices natural, accelerated in the prices of other essential raw materials such as metals, plastics, chemicals and colors over the past months have worsened matters for small-scale units, "said Arnab Chatterjee, head of India rubber and polymer products, a small provider of conveyor belts rubber and rubber sheets in Kolkata.
According to industry estimates, more workers are employed in numerous small-scale units manufacturing rubber product, so its closure lead to mass unemployment in the sector.
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