Michelin Tyre company is a threat to Kerala?

90% of Indias total rubber production is from Kerala.
More families in Kerala are depended on Rubber Production, directly and indirectly.

Kottayam District of Kerala leads in rubber production among other states of India.
Rubber plant is not a native of India. Dutch colonialists brought them from Indonesia since Kerala similar tropical climate

Internatinally the presense of Natural rubber in a tyre is 52%.
Indian Tyre manufactures use more more Natural rubber, upto 80% due to the climatic conditions, bad roads, and the over loading of vehicles.

Michelin's Tweel might dramatically change the conventional usage of rubber tyres in the future.

Take a look at their new invention under test...

Agni Sharman

Chennai

Rubber price crash hits land deals in Kerala

Kozhikode: Rubber plantations, once the most sought after farmland in Kerala, now find no takers because of the plummeting price of natural rubber in the last two months. The price touched an all-time high of Rs 142 per kg on August 28 but lost around Rs 60 a kg in 45 days to touch Rs 81.50 on October 13. The price now hovers around Rs 90 per kg.

The natural rubber price has trailed the crude oil price as synthetic rubber is a crude oil derivative. "The price for an acre of plantation here was around Rs 12 lakh (Rs 1.2 million) two months ago. Now, there are sellers ready to dispose of the land at Rs 10 lakh (Rs 1 million). But buyers seem to be wary, expecting a further fall in prices," said S Mohan, a real estate broker at Thaliparamba in Kannur district. He said that his business had plummeted around 40 per cent after the slump in rubber prices.

Real estate brokers say that many people who entered into agreements to purchase plantations are now backing out, fearing a further fall in rubber prices. "Three months ago I had brokered a deal for 80 acres of plantation in Karnataka for four US-based Keralites at Rs 600,000 per acre. They paid half the amount and have been taking the yield under an agreement to pay the remainder in six months' time. Now, they say they want to cancel the deal as prices of rubber have fallen."

Real estate dealers say they feel the prices of plantations will fall further. "I think the market will dull further in the next few months. Prospective buyers here are not ready now to commit a price. My business is down almost by half," said K K Abdul Nasar, a real estate broker in Kozhikode. He said that the plantations which had attracted a price of Rs 500,000-Rs.700,00 per acre three years ago had found buyers who paid Rs 24 lakhs (Rs 2.4 million) as natural rubber prices were on the upswing.

"There is a 90 per cent decline in buying and selling of plantations. Almost no business has taken place in the last two to three weeks," K S Eapen, who draws up land registration papers in Kottayam and is president of the All-Kerala Document Writers' and Scribes' Association, said. "It is the real estate brokers who jacked up the prices and many unwittingly bought land at exorbitant rates. It is not a sound financial proposition to buy a plantation at such rates," Eapen added.

Farmers point out that it makes no sense to invest Rs 2-3 million on an acre of rubber garden as even fixed deposits provide give better returns. "The rubber price now stands at Rs 80-90 (per kg). This is a good price and is enough to give a decent return to farmers. But if one had purchased the plantation at Rs 15-20 lakhs (Rs 1.5-2 million) per acre, one can't expect a profit from the investment," Alex Kurian, a farmer in Thrissur district, said.

(IANS)

Tread rubber traders in a quandary

(the hindu report by George Jacob)

KOTTAYAM: Tread rubber manufacturing units in the State have run into a sticky situation on account of the anti-dumping measures initiated by the Central government to protect the interest of carbon black manufacturing industry in the country.

B.F. Varghese, president of the All-Kerala Small Scale Pre-cured Tread Rubber Manufacturers Association, said the Ministry of Commerce through its notification No.(RE-2008) 2004-09, January 16, and amended thereon, had restricted import of carbon black if its CIF value was less than Rs.80 a kg. “However, the ruling price of the same product made in India is less than Rs.80 a kg,” he said.

“In addition, the government has imposed anti-dumping duty on carbon black exported from Australia, China, Iran, Malaysia, Russia and Thailand,” he said.

“These two measures have made the re-treading manufacturers totally dependent on Indian carbon black manufacturers, who at present, do not have the capacity to meet the domestic consumption needs,” Mr. Varghese said.

Carbon black industry in India is controlled by a handful of manufacturers, and the government’s measures have put the retreading industry at the mercy of these manufacturers who according to Mr. Varghese are showing symptoms of cartelization.

Demand for carbon black had outstripped its production as per the documents published by the carbon black manufacturers, Mr. Varghese said.

The Indian tread rubber industry exports its product to more than 35 countries and many of the export houses had earned Star Export House recognition on account of their excellent performance, Mr. Varghese said.

He said the association would take up the matter with the Union government and the State Industries Minister.