Kottayam: The international rubber market has crossed the ₹250 mark after a gap of two years, with the last instance recorded in August 2024. According to Rubber Board data, domestic prices for RSS-4 stand at ₹231, while trader rates are hovering around ₹230.

In Bangkok, rubber prices surged to as high as ₹264 before easing to ₹257. The price rally has been largely driven by strong procurement by tyre manufacturers, who have ramped up inventory to meet rising demand from the automotive sector. Also, the aggressive buying by rubber-based European and Chinese companies is a key factor supporting the upward trend. Higher crude oil prices and the depreciation of the Japanese yen have both influenced commodity markets.

Since 2021, Chinese firms have been significantly expanding rubber-based industries across ASEAN countries. Procurement agencies supplying these units have been sourcing rubber directly from major producing nations, offering competitive prices to farmers and strengthening demand in global markets.

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However, this international price rally has not been fully reflected in the Indian market. Domestic prices have failed to rise in proportion to global gains, with limited transmission of international trends.

Tyre companies had already built sufficient inventory through earlier imports, while domestic stock availability has also weighed on price growth.

Meanwhile, discussions around a potential price stability fund and support price mechanisms during the election period have generated optimism among growers. The General Secretary of the rubber producers’ collective, Babu Joseph, said farmers are hopeful that whichever government comes to power will revise the support price to ₹300 in the near term.