Falling Scrap Rubber Prices Raise Concerns Among Farmers

speedy Summary

• Scrap rubber prices have dropped significantly, causing economic hardships for farmers who recently shifted to scrap rubber production.
• Prices for ribbed smoked sheet (RSS) rubber and field coagula, such as tree lace and cup lump (collectively sold as scrap rubber), have fallen steeply.
• Scrap rubber prices decreased from ₹132 per kg on July 30 to ₹118 per kg,leading farmers to suspect possible market manipulation by companies and traders.
• Farmers transitioned over the years from conventional sheet-making to latex sales for ease of processing, with recent trends favoring cup lump production due to lower labor requirements.
• Despite domestic supply shortages caused by continuous rainfall disrupting tapping activities, RSS rubber prices also declined unexpectedly.
• Babu Joseph of the National Consortium of Rubber producers Societies claimed that unchecked imports of compound and block rubber by tyre companies are harming domestic producers.

Indian Opinion Analysis

The steep decline in scrap and RSS rubber prices amidst supply shortages presents a challenging scenario for smallholder farmers already navigating shifts in production methods. The suspected influence of market manipulation raises questions about governance in commodity pricing mechanisms. Additionally, farmers’ concerns regarding excessive imports highlight potential gaps in policy oversight aimed at protecting domestic producers.

This situation underlines a critical need for regulatory intervention and balanced trade policies that support india’s agricultural economy. If left unaddressed,prolonged instability could discourage smallholders from continuing production-potentially impacting rural livelihoods-and disrupt India’s broader goal of sustaining self-reliant domestic agriculture sectors.

Read more: Published – August 02, 2025 07:24 PM IST