15% Fall In Prices Of Natural Rubber
Published On 2019-10-15 17:43:26 318 views
The variety of RSS-4 rubber, which is used in the tyre industry is now been traded for Rs 120 per kg
The rising production and swift drop in the demand in the past few months have lead to a 15 per cent slump in the prices of natural rubber since September. As the peak tapping season has begun, the industry is afraid of a further slowdown in the coming weeks. According to the sources, the variety of RSS-4 rubber, which is used in the tyre industry is now been traded for Rs 120 per kg. It has seen a drop of Rs 20 if compared to the price at the beginning of September.
A grower in Kottayam, PM Thomas said: “It will be difficult to sustain the interest of farmers in tapping during the peak tapping season with falling prices and dwindling consumption.” The provisional reports that are presented by the Rubber Board state that rubber production has seen a rise of 13 per cent to 2,40,000 tons from April to August 2019. However, for the same period, the figures for consumption has dropped by 6 per cent to 4,82,120 tons.
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According to Thomas, in the period of June-August, a price level over Rs 140 per kg has contributed to higher output. In the month of June, the price of RSS-4 averaged at Rs 140 per kg, which is one of the highest figures in recent times. However, the price from September has started to drop, and the demand crunch is also sustaining.
The past president of Indian Rubber Dealers Federation, Pius Scaria, said “There are hardly any takers for the rubber produced. That, along with a shortage of tappers, may discourage small farmers from tapping.” As the rubber is globally getting cheaper and the local prices are rising, the tyre industry has taken the advantage of the situation by importing huge quantities of tyres.