Rubber price plunges by Rs 5 in a week

Kottayam: Rubber prices are falling deeper even after the rise in global demand and the unavailability of the product. The price of the RSS4 grade sheet, which was at Rs 179 in the previous week, saw a steady dip of five rupees in just one and a half weeks, taking it to Rs 174. 
 
Despite the soaring prices of rubber in the global market, tire companies have imported goods and are not showing too much interest in buying from the domestic market. In the months of February and March, when the goods available locally were not sufficient, the price went up to Rs. 190. Many farmers and distributors at that time kept the sheet to themselves without selling. The tire companies then did not cancel the contract due to the shortage of goods. 
 
Imports were encouraged at this time to avoid plant closures. They even say that the loss due to price stagnation in the international market has not been considered too. 
 
After the state experienced summer rains, farmers have started tapping. Only a limited amount of rubber is coming into the market, however the goods are being released quickly without being held back. This is also considered a reason for depreciating prices. 
 
On the other hand, the rubber board had announced assistance and support to exporters with the aim of bringing the domestic price to Rs 200 but the exports have not taken off significantly. This has also hit the market severely.