Rubber Price Touches Historic ₹300 Per Kg; Brings Hope to Farmers

For the first time in history, rubber prices have touched the magic figure of ₹300 per kg. RSS-4 grade sheet rubber was traded at ₹300 per kg in Kottayam on Friday. Traders with pending orders were reportedly the ones who purchased rubber at this rate. Meanwhile, the Rubber Board’s official price stood at ₹298 per kg.

In January this year, the average price of RSS-4 rubber was ₹192 per kg. This marks an increase of around ₹108 per kg in just nine months. The sharp rise has raised hopes among rubber farmers and traders. Meanwhile, the international rubber price stood at ₹268.63 per kg on Friday. Although international prices crossed ₹300 in June, they declined afterwards.

Reasons Behind the Rise in Rubber Prices

A decline in domestic production and growing demand are considered the main reasons behind the surge in rubber prices. According to Rubber Board figures, India is currently facing a rubber shortage of 5.22 lakh metric tonnes. Tapping is not taking place across 1.76 lakh hectares of rubber plantations.

Production has also declined in major rubber-producing countries, including India, Malaysia, Thailand and Indonesia, partly due to climate change and other factors.

The crisis in shipping and transportation amid the West Asian conflict has also disrupted imports and increased import costs, benefiting the domestic rubber market. In addition, rising crude oil prices have pushed up the cost of synthetic rubber, contributing to the increase in natural rubber prices.

Farmers Hope for Continued Price Rise

Rubber farmers are optimistic that the upward trend in the market will continue. With rubber prices reaching an unprecedented high, the sector is showing signs of renewed optimism, bringing much-needed relief and hope to farmers.