Natural rubber prices reach record ₹300 per kg
The domestic price of RSS-4 grade rubber hit a historic high on Monday as international prices and tight supplies drive a rally.
The price of natural rubber in the domestic market reached a record ₹300 per kg on Monday, October 2, according to a daily price report from the Rubber Board. The price applies to RSS-4 grade ribbed smoked sheet (RSS) rubber.
While farmers in the Malabar region fetched ₹300 per kg, traders in central Travancore procured rubber from farmers at rates up to ₹298 per kg, The Hindu reported. Some tyre manufacturers in Mumbai reportedly bought RSS-4 grade rubber at ₹303 per kg.
Rubber Board officials stated that the price surge is due to firm international prices and a shortage of domestic supply. An official noted that the peak domestic production season has not yet started, which has further supported prices.
Rubber Board chairman N. Hari said that the country requires 1.5 million metric tonnes of natural rubber annually, but domestic production is approximately 9,00,000 metric tonnes. He noted that Kerala accounts for 72 per cent of this production.
The Union Commerce Ministry has confirmed that Kerala and other traditional rubber-growing areas will be part of the second phase of the Automotive Tyre Manufacturers Association (ATMA) plantation programme. This follows the current implementation of the programme in northeastern States.
Additionally, ₹100 crore from the unspent ATMA I-SPEED scheme for Assam and Tripura has been set aside for traditional growing regions, including Kerala. N. Hari added that an MoU for this allocation will be signed within a month.