Poor harvests hit shellac prices
PRICES of shellac have climbed 24.5% because of poor harvests in India and Thailand.
The non-toxic resin is used in wood finishing, printing ink, leather and footwear, paint, cosmetics and confectionery.
Indias Shellac Export Promotion Council (SEPC) said the summer crop of lac, from which shellac is made, was down more than 50% to about 7,000 tonnes.
Indian and Thai farmers are growing less lac because of poor returns. This has enabled China, Cambodia and Vietnam to sell more in the world market.
Kunal Jayaswal spokesman for the SEPC, said the crop failure had once again brought to the fore the poor farm extension programme of Government agencies and the industry.
- Financial Times 30/06/98 page 36