Rubber prices surge amid supply shortage; Rates cross ₹210

Kottayam: Amid a shortage of supply, rubber prices have seen an upward trend. The prevailing market price is ₹204 per kg. Traders say that isolated deals for RSS-4 grade rubber have gone up to ₹215 per kg. However, only a very limited quantity of rubber sheets is reaching the market.

The surge became evident after a leading tyre company, which procures the largest quantity of rubber sheets from the state, purchased rubber at ₹206 per kg the other day. Following this, tread rubber companies procured stock at ₹210 per kg, and agents even booked supplies at ₹215 per kg.

However, due to low tapping activity, farmers are not able to benefit from the price hike. Despite setting up rain guards, harvesting has not picked up, according to rubber growers’ associations. Heavy pre-dawn rains have been affecting the yield hugely.

The shortage in supply and the rise in prices have put tyre companies on alert. Currently, 35,000–40,000 tonnes are being imported per month, in addition to an average monthly import of 20,000 tonnes of compound rubber. Tyre companies have also approached the Rubber Board, urging it to intervene to ensure sufficient supply. They have warned that if rubber remains unavailable, they may be forced to scale down factory operations.