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A drop in the price of natural rubber, reportedly to the tune of around ₹8 per kg over the last few weeks is worrying growers, especially with tapping for the peak production season commencing.
According to Rubber Board figures, prices for RSS IV grades stood at ₹148.50, while traders claim that the trading was only at ₹143.50 and even at ₹142 in some centres. If the price continues to fall, traders said there are possibilities of temporary stoppage of production by farmers.
Globally, international NR also started moving southwards to reach ₹123.50 for RSS III grades and official sources attribute it to higher production in producing countries such as Thailand. The slowdown in Europe is also a contributing factor for the price to fall.
Traders said tyre manufacturing companies, who are active in the market for procurement, have restricted their purchase in view of the price fluctuation.
Influencing factor
George Valy, President of Indian Rubber Dealers Federation, cited some reasons for the price fall. This includes lower consumption in China due to rising Covid cases, selling of NR by Ivory Coast at lower prices, NR availability from the North-Eastern States of Assam, Tripura and Meghalaya, rising imports of block rubber etc.
Around 15,000 tonnes of NR from the North-East is getting ready for sale in the domestic market. All these factors have influenced the domestic market prices, he said.
Binny Mathew of National Consortium of Rubber Producer Societies said the ensuing months starting from November till March are considered to be the season for the current harvest which would witness increased tapping. Several farmers have shifted to latex production in Covid times due to the rising demand for gloves. But now, latex prices have also come down and are hovering at ₹105.
The declining prices have prompted the farming community to reiterate their demand to hike the support price for rubber from the current level of ₹170. This will retain farmers into rubber farming, he added.
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