KOTTAYAM: Domestic rubber prices scored the highest ever record on Monday, with RSS-4 grade notching Rs 143 a kg in the market.
The earlier record price was tagged to August 29, 2008 at Rs 142.5 a kg. Vindicating predictions of market observers on a further high in the coming weeks, the price is all set to remain buoyant for some time, owing to the heavy shortfall in natural rubber production world-wide.
Tapping has come to a standstill in most of the rubber- growing areas in the state owing to the annual leaf fall phenomenon, accentuating the production shortfall.
While a boom in prices is on the cards, industries which are consumers of the raw material have become hapless since imports are not viable at present, even through the tax-free, advanced general licence route. RSS-3, the equivalent grade of RSS-4, has docked Rs 151.24 in the SICOM (Singapore) market on Monday. On last Thursday, it went as high as Rs 152.04 a kg. Similar price spurts were posted in other prominent market centres at Kaulalumpur and Bangkok also.
In spite of recessionary trends, the healthy growth recorded by the automotive sector in the country has contributed to the heavy demand for natural rubber. Added to it, China and Japan are sourcing the produce heavily from markets worldwide. The slight summer showers experienced in many rubber-growing areas of the state in recent days have compounded issues in the sector, since fresh shoots and tender leaves are prone to gnarling, which may eventually affect production for a few months. According to indications, at least three months are needed after the restart of the tapping season for natural rubber production to reach the projected levels.
The impact of various such factors, in addition to global market trends, would influence the prices, market sources said. Interestingly, only a small section of rubber growers, who has holding capacity, would be able to cash in on any handsome price hike for the produce in the off-season.
But there are a few major suppliers and stockists who are poised to reap rich dividends by releasing huge stocks in their possession now. No agencies, including the Rubber Board is keen to facilitate a mechanism, as in the case of trading of cardamom, for warehousing natural rubber at ideal temperatures and enable growers to take loans from banks.
(expressbuzz.com)
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