Daijiworld Media Network – Mangaluru (MS)

Mangaluru, Aug 23: Rubber prices have reached a record high after 12 years. The price specified by the Rubber Board is Rs 235 per kg; however, in most areas of Kerala, including Kasargod, the market price ranged from Rs 237 to Rs 241, with some traders even selling at Rs 241. In 2011-12, the price of rubber sheets peaked at Rs 283 per kilo.

A shortage of rubber is prevailing in the market due to excessive rains and inclement weather. In the past few days, the price has risen by Rs 2 to Rs 3 per kg. The main reason for the price hike is the short supply. If the current situation continues, the price might reach Rs 250 per kilo within a week or two.

It is common for rubber prices to rise in the international market when they increase in the domestic market. However, the current situation is different. International rubber prices are Rs 50 lower than Indian rubber prices. The rate for RSS 4 grade natural rubber in Bangkok has reached Rs 200. More natural rubber is being used to manufacture tires for electric vehicles, which has increased demand and prices.

Rubber traders are concerned that industrialists might stop purchasing rubber in the coming days to force prices down if tapping becomes more active after the monsoon. Retailers are not keeping more stock due to this concern. There are also reports that rubber is being imported through some Indian ports.

Additionally, the price of latex (rubber milk) is expected to reach record levels. In the past few days, the price was Rs 150. For extremely dry latex, the price is Rs 155, and in some places, traders are offering Rs 170. In 2012, the price of latex reached Rs 180.

M Vasantageshan, CEO of the Rubber Board, said, “Demand for rubber will increase in the coming years. Growers should try to capitalize on the price rise. Demand for natural rubber has grown in the industrial sector. However, rubber production in India is low. The aim of the Rubber Board is to increase rubber farms by 6,000 hectares every year.”