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Representative Image / Photo: G Sivaprasad, Mathrubhumi
Kottayam: The rubber market is in a stalemate situation as tyre companies have ceased the procurement of raw materials.Most of the rubber merchants have closed their shops due to the apparently orchestrated move of the tyre companies. The merchants are not taking rubber sheets because of the situation and things are grim for the cultivators.
In Kottayam, rubber is priced at Rs 145. But the farmers are actually getting only around Rs 142.
Earlier, Rubber Board had observed that the unwelcoming stand of tyre companies towards domestic production will be counterproductive in the coming years.
If the prices fall, then the farmers may lose interest. Lack of domestic production results in high reliance on imports. If prices in the international market affect the sourcing of rubber, then rubber-based industries will be in limbo.
In August, tyre companies exported 56,000-tonne sheets. The companies are eyeing low rates and booking stock whenever the prices fall. Reportedly, the rubber companies assume that domestic prices will reduce if procurement is ceased.
It is learnt that the Ministry of Commerce and Industry has sought a response from the tyre sector over the apparent ban on procurement.
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