Rubber price rises beyond Rs 200, but a bit too late for farmers

Reports suggest there could be a notable dip in production this season in key rubber-producing countries like Thailand, and that seems to be reflecting in the market
Rubber plantation
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After a brief lull, rubber prices in Kerala have once again crossed the ₹200 mark. It’s a return many farmers had been hoping for, though not everyone is in a position to benefit from it.

Last year, prices had touched ₹250 but then slid steadily. At one point, rubber was selling for as low as ₹180. The recent rise is being linked to a combination of lower local production and a pickup in demand — both within the country and abroad.

Local supply shrinks, demand grows

Industry sources say international prices are also inching up. Reports suggest there could be a notable dip in production this season in key rubber-producing countries like Thailand, and that seems to be reflecting in the market.

In Kerala, RSS-4 grade rubber is now fetching around ₹201, with some regions seeing prices as high as ₹203. With prices moving upwards, tyre companies have reportedly started buying in larger quantities again.

Global trends push prices up

December and January didn’t see much demand for rubber. Global tyre sales were sluggish around that time, which could have played a part. But now, trade insiders feel prices may climb further — though nothing is certain.

Farmer groups are calling the rising demand a positive signal. But there’s a catch. Tapping activity is likely to be minimal over the next two months, which means there won’t be much fresh rubber entering the market.

Farmers caught off guard

Earlier, when prices were low, many tyre companies had imported rubber in bulk. After that, they didn’t show much interest in local purchases. But with prices rising, they seem to be more active in the domestic market now.

Still, not all farmers are cheering. Most small-scale growers have already sold off their stock, fearing prices would drop further. Now, with prices going up, many of them have little or nothing left to sell.

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