Concerned over the falling prices of natural rubber, the Rubber Board will organise a meeting of consumers next week.
The Executive Director of the Board has called for a meeting of major natural rubber consumers on October 28. The objective of the meeting is to review the current market situation in the wake of decline in rubber prices from an all-time high of ₹247 per kg August 9, which surpassed the previous record of ₹245 released on April 5, 2011.
Rubber Board officials said prices exceeded ₹200 on June 11, a milestone not achieved in the last 12 years. Key factors driving the price surge included international market trends, abnormal heat waves that reduced rubber production and monsoon-related disruptions to rubber tapping. The prices plummeted 24 per cent to ₹187 per kg by October 21.
Imports from April to September this year rose to 310,713 tonnes, up from 254,488 tonnes a year ago, recording an increase of 22 per cent. In the present scenario, where international price exceeds Indian market rates, the Rubber Board urged major consumers to procure rubber proactively. This could stabilise current domestic prices and facilitate future production planning of major consumers amidst potential supply fluctuations. It will also address a likely shortage in the availability of natural rubber from March to June 2025, the officials said.
Dealers seek intervention
George Valy, president of the Indian Rubber Dealers Federation, told businessline that dealers are facing difficulties in disposing of the procured materials due to very limited buying from the consuming industry because of the availability of huge import materials. Domestic prices have fallen to Rs180 level and the Rubber Board should intervene to prevent further fall in prices, he said.
Surging prices have forced farmers to take up farming even in untapped areas and this has resulted in improved availability of fresh materials into the domestic market. However, the consuming industry’s decision to stay away from the market has bit both dealers and farmers hard, he said.
“We have raised our concern on dropping prices with the Rubber Board and requested to facilitate measures for ensuring procurement by the industry from the domestic market”, George Valy said.