Deficient imports make prices to peak

摘要

Indian natural rubber hit the peak price of Rs. 186 a kg for RSS 4 in the first week of August 2010, after striking a record monthly average of Rs.182 in July. The market was moving up briskly and the spokesperson of the tyre industry was naturally quick to urge the Government to intervene and control the price rise! The rise was of course, not the result of any Government action and, as such, no worthwhile relief measure ensued. The fact is that the record upswing in prices was largely on account of a mismatch between demand and supply. The supply was short when the demand remained firm, and arrivals from abroad were not large enough to stave off a price spurt.