The Hindu Business Line : Supply shortage buoys rubber

Though the rubber prices have reached record levels, there is shortage of the material in the market, the Rubber Board Chariman, Mr Sajen Peter, told Business Line commenting on the uptrend. The tapping period has been extended following the summer rains, but production has not increased correspondingly.

Severe heat and sudden rains reduced the availability of latex. Usually tapping commences at the end of May.

This year summer rains have upset all the calculations. In the international market also, prices are high. The price of RSS 3 is Rs 115 a kg.

During May and June, the price of natural rubber usually rules high.

Only twice in a year, does the domestic price rule above the international price.

It is estimated that till last week, there was a stock of 1,70,000 tonnes of rubber. This is the combined total of growers, dealers and companies, Mr Peter said.

Hike consequences

The present trend is only a temporary phenomenon and may not last long, said Prof K.K. Abraham, President of the Indian Block Rubber Manufacturers Association, in reply to a question about the present increase in domestic prices.

However, it is good for the growers, he mentioned.

Small rubber goods manufacturers are in great difficulty due to the high cost of raw material.

The non-availability of field coagulum rubber and the high prices are unbearable to the crumb rubber factories.

The present price increase would also enhance the import of rubber and tyre, Prof Abraham said.

Rubber growers in plantations are not so jubilant about the surging prices.

“The growers require a price which should ensure stability as against the present ups and downs,” said Prof Devasia, a grower.

“Such hikes are not healthy for the industry. Most of the small rubber goods manufacturers have downed their shutters due to the sharp increase in rubber prices,” a small rubber goods manufacturer told Business Line.

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