KOTTAYAM : The natural rubber sector in India is facing a unique predicament. Despite a significant gap between demand and supply, its price is stagnant. Moreover, the domestic rubber price have has stayed low even as its rate has risen and, this month, crossed the Rs 200 per kg mark internationally.
As per the data from the Rubber Board, natural rubber price grew sharply in the first week of March, reaching Rs 204.80 per kg in the Bangkok market on Friday, after a seven-week hiatus. In contrast, the domestic price stood at Rs 169 per kg.
“This is quite unusual, as the domestic price has stayed stagnant despite a significant rate increase in international market. It appears tyre companies have deliberately chosen to refrain from participating in the market to manipulate prices within the country,” alleged Babu Joseph, general secretary of National Consortium of Rubber Producers’ Societies (NCRPS).
Given the stagnant domestic prices, farmers are calling on the Centre and state government to purchase rubber at higher rates and export it to stimulate the domestic market.
“Taking advantage of the favourable conditions internationally, government agencies such as the Plantation Corporation of Kerala, state marketing federation, or companies under the Rubber Board like Manimalayar Rubbers should buy the commodity from farmers at higher rates and export it. The move will undoubtedly stimulate the domestic market,” said Abey Iype, Karshaka Congress district president.
It is learnt that Plantation Corporation has already submitted the suggestion before the government to export rubber. However, the government is yet to green light it.
“The government should intervene to support farmers. Unfortunately, both the state government and the Centre have failed to act, thereby deceiving farmers,” Babu alleged.
Global fall in production
Reports have surfaced about a significant drop in production in Thailand, the world’s leading rubber producer, in 2023. As per the data, the quantity of rubber exported from the country in the first 11 months of the year experienced a annualised decline of 9.3%. Natural rubber exports from Indonesia too saw a substantial decrease of 15.4% during the same period.
As global supply of rubber tightens, demand is on the rise. However, Indian farmers are yet to get the benefit of the rise in international rates allegedly due to the concerted efforts of the tyre industry.
Plantation Corporation has submitted suggestion before the government to export rubber. But, it is yet to give a green signal