MUMBAI (Commodity Online): The NMCE Rubber futures plunged on the reports of center allowing concessional duty rubber imports.
The Centre has allowed imports of 40,000 tonnes of natural rubber at a concessional duty of 7.5 per cent for the current fiscal. This is similar to the one allowed last fiscal. Since April 1 this year, the Customs duty on natural rubber has been fixed at 20 per cent or Rs 20 a kg, whichever is lower.
The move to allow imports at a lower duty follows demand from the user industry, particularly tyre manufacturers, to allow import of two lakh tonnes duty-free. Sources said that the Commerce Ministry had recommended allowing imports of one lakh tonnes duty-free.
But the Finance Ministry, which has a final say, has treaded a cautious path in arriving at the final decision. Growers, on the other hand, are totally opposed to imports. The TOCOM Rubber futures are trading with negative cues.
The NMCE Rubber August contract is currently trading at Rs.21500 per quintal, slight higher by 0.64 per cent against the previous close. In the earlier sessions the contract traded at a range of Rs.21251-21524. Volume traded is 1363 lots so far.
