Farmers a worried lot as rubber price falls below Rs 100 a kg
Kottayam: The moves to contain failing rubber prices are turning futile with the market price hitting a six-year low.
On Saturday, RSS grade IV was sold at Rs 99.50 per kg. Those approached the retail dealers were offered an even lower price.
On Monday, RS Grade IV and V were sold for Rs 101.50 and Rs 99 respectively.
Normally, the production of rubber used to go up during this season, especially in the months of November and December. However, the farmers reduced production owing to rain and price crash. It is expected that the production will come down by 40 percent to six lakh tones.
Normally, the price will go up with the price falls. However, this is not happening due to additional imports. In 2014-15, nearly 4, 42,126 lakh tonnes of rubber were imported and this is an all-time record. Farmers say this is the key reason for the price trend.
The fall in crude oil price is another factor. Synthetic rubber, an artificial elastomer synthesised from petroleum byproducts, is widely used to manufacture various products.
It may be noted that the rubber price, which stood at Rs 248 per kg, started climbing down from 2013. Subsequently, the prices of various grades and latex came down.
Even the package announced by Kerala government by announcing a minimum procurement price of Rs 150 for a kg failed to address the issue.