KOTTAYAM: Sending waves of jubilation across the Indian rubber plantation sector, the price of natural rubber has officially breached the historic Rs 300-mark per kg in the domestic market for the first time. According to the daily price report of the Rubber Board, the price of grade-4 ribbed smoked rubber (RSS) (sheet rubber) was recorded at Rs 300 per kg on Monday, marking an unprecedented milestone in the history.
The actual procurement prices offered by major tyre manufacturers were even higher. According to traders, Mumbai-based multinational tyre manufacturer Balkrishna Industries Ltd (BKT), purchased RSS-4 grade rubber at Rs 303 per kg, while Apollo Tyres procured the commodity at Rs 300 per kg from traders on Monday.
“We expect prices to rise further, given the current momentum in the market,” said a rubber trader in Kottayam. The price rally has also brought cheer to rubber growers, particularly in the Malabar region, where farmers were able to fetch Rs 300 per kg. In Central Travancore, however, traders procured rubber directly from farmers at prices of up to Rs 298 per kg.
With the international rubber market continuing to maintain its upward momentum, market experts expect the bullish trend to sustain in the domestic market in the coming days. The domestic market is also facing a supply deficit of around 5.22 lakh tonnes, further supporting the price rally.
“There are multiple factors behind the current price rise. The supply crunch in the domestic market, coupled with support from the international market, are the primary reasons for the surge. The peak production season in the domestic market is yet to begin, which has also worked in favour of prices,” said Binoi Kurian, deputy director of the Rubber Board’s Planning and Market Division.
The El Niño phenomenon has also affected rubber production across Southeast Asian countries, tightening global supplies. The West Asian conflict has added to the pressure on energy markets, with higher Brent crude prices increasing the production costs of synthetic rubber. This has prompted manufacturers to favour natural rubber. Meanwhile, Keralam’s plantation sector is witnessing a revival after nearly a decade of stagnation, with the price rally breathing life into plantations that had remained untapped for years.