Now Reading: Natural rubber hits record ₹300 per kg
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Natural rubber hits record ₹300 per kg
The Story in Brief
Natural rubber prices in the domestic market touched a historic ₹300 per kg for the first time, with RSS-4 grade ribbed smoked sheet rubber quoted at that level on Monday (2 November). Traders said actual procurement prices offered by major tyre manufacturers were higher, with a Mumbai-based manufacturer buying RSS-4 grade at ₹303 per kg. The rally has benefited growers, especially in the Malabar region where farmers fetched ₹300 per kg, while in central Travancore prices reached up to ₹298 per kg.
The Rubber Board attributed the surge to tight domestic supplies and firm international prices. The El Niño phenomenon has hit production across Southeast Asia, while the West Asia conflict has pushed up Brent crude prices, raising synthetic rubber production costs. India's annual natural rubber requirement stands at 1.5 million metric tonnes against domestic production of about 9,00,000 metric tonnes, with Keralam accounting for 72%.
The Union Commerce Ministry has assured that Keralam and other traditional rubber-growing regions will be included in the second phase of ATMA's plantation programme, currently being implemented in northeastern states. An MoU for allocation of ₹100 crore under ATMA's I-SPEED scheme, previously unspent in Assam and Tripura, will be signed within a month.
Indian Opinion Analysis
The ₹300 per kg milestone reflects a supply-demand gap that will persist until the peak domestic production season begins. Growers in Malabar benefit most, while central Travancore farmers see slightly lower prices. The government's decision to include Keralam in ATMA's second phase and redeploy ₹100 crore from I-SPEED addresses chronic replanting and under-tapping issues, but the MoU signing within a month is the concrete next step to watch.
Source: thehindu.com
This brief was synthesised by AI from the source linked above. Methodology and corrections.
