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India rubber price touches one-year high

Giving relief to farmers and vendors, the price of rubber increased to Rs 150 per kg after a year. Earlier, rubber was sold at this price in June 2019.

Farmers, as well as vendors, are relieved after getting Rs 150 for RSS-4 variety of rubber. Rubber supply in the market has been affected due to the continuous rain and COVID restrictions.

On Friday, wholesale vendors have purchased rubber from retail sellers. Hence, farmers hope they will get the same price for rubber in the coming days.

In Bangkok market, rubber prices were recorded at Rs 156 earlier this week. In October, the price was increased by Rs 14 in Bangkok. Following this, Kerala also recorded a price hike. Rubber was priced at Rs 140 on October 20. Now, the price touched Rs 150 per kg within three days.

In Thailand and Vietnam, heavy rain affected rubber production and it also led to the price hike. At the same time, the improvement of the automobile industry in China following the relaxations in Post-COVID outbreak also contributed to a hike in rubber price.

Meanwhile, Indian tyre companies are observing the rubber market for purchase. Their decision to purchase the local rubber will be crucial in the coming days. Some companies already possess a stock of imported rubber.

At the same time, the government has fixed Rs 150 as the basic price of rubber per kg. Farmers are assisted with financial aid under the relief package based on this price. As per the rule, financial aid will be granted to the farmers from price stabilisation fund only if the market price of the product declines below Rs 150.

“Nowadays, the use of rubber increased a lot. In September 2019, 85,000-ton rubber was consumed in India. In September 2020, the consumption touched 1.03 lakh. As demand increases, the price will improve. The strengthening of the automobile industry in China also led to the price hike. So, there are chances for further improvement in the price in the coming days. The farmers can make benefit by cutting the production cost,” said rubber board executive director Dr KN Raghavan.

“It’s a great relief that the price touched Rs 150. The price hike will benefit the farmers a lot. Farmers and vendors have demanded that rubber produced locally should be purchased for usage within the country. Import of rubber should be made under control,” demanded Biju P Thomas, General Secretary of Rubber Dealers Federation.