Natural rubber prices in the domestic market have declined significantly due to substantial imports of compounded rubber, holiday shutdowns, and sluggish tyre sales, according to local rubber traders.
The current price for RSS4 grade rubber in the Kottayam market is ₹201 per kilogram. This marks a drop from an average of ₹212 per kilogram observed over the months of June, July, August, and September.
Traders are facing challenges with stock management, having ample inventory yet struggling with sales. Experts emphasize that to encourage higher production, farmers must receive a minimum of ₹200 per kilogram.
Despite previous claims of a market shortage, it is noted that rubber production is vulnerable to weather conditions and other agricultural factors.
International market volatility has also impacted local prices, with fluctuating reports emerging from rubber-producing nations. The recent sharp decrease in prices can be directly linked to increased imports; August witnessed imports of approximately 75,000 tonnes, followed by 61,000 tonnes in September.
Post-Onam holidays, there has been a noticeable boost in rubber availability as farmers resumed tapping following the installation of rain guards.
According to data from the Rubber Board, the average price of RSS4 grade rubber was ₹200 in June, ₹210 in July, ₹237 in August, and ₹229 in September, before dropping to ₹201 per kilogram this past Monday.
Published – October 14, 2024 11:54 pm IST
