Natural rubber prices top ₹200/kg after 6 months, cheer up growers
Rising prices of natural rubber reaching ₹200 per kg have brought some cheers to the farming community as they will likely derive some monetary benefits by disposing of their holding stocks.
It was in August last year that prices of RSS1V crossed the ₹200 mark to touch ₹247 and later came down to ₹200 in October. They further dropped to ₹180 in November. However, during December 2024, January, February and March 2025 – the peak production season, prices went up again to ₹190. This has benefited the consuming industry to purchase from the domestic market, George Valy of Indian Rubber Dealers Federation said, adding that the sector was able to produce around 4 lakh tonnes during these months.
Now, prices have again topped ₹200 on Thursday and a good portion of the available stock has been sold in the market, he said.
Hope of early summer rain
Valy attributed the surge in price to supply tightness, declining imports due to various reasons, sourcing by the consuming industry from the domestic market, etc. The production season is getting over, however, the early summer rains in growing regions have given hope of getting a good yield in the coming season. If the rain continues in April, the tapping could start by mid-April for the next season, he said.
According to Santhosh Kumar, CEO, Harrisons Malayalam Ltd, the market has shown signs of improvement after being in a stagnant phase for some time. This increase is due to drop in availability as the sector has reached a low production season. Trees have refoliated after wintering and crop is at lowest levels. High temperatures witnessed in production have also reduced latex flows.
Global shortage
The consuming market in the North is opening after vacation, and this is expected to lead to a rise in demand in the short term, which will impact prices. Internationally too, the production season is at its lowest levels post-wintering and will impact international prices in the short run, he said.
Krishnan Thampi, Head Research, Hedge Group, said prices are rising due to a combination of factors, including a global shortage stemming from production disruptions in key producing nations, increased demand particularly from the tyre industry and supply chain issues.
Despite a slight dip in international rubber prices, domestic prices are expected to remain elevated due to lower production during the off-season and an anticipated decline in availability as the season draws to a close. Minimising supply chain delays is crucial during such periods, he said.
