The price of RSS 4-grade of natural rubber has taken a hit, falling to the range of around ₹162 a kg even as farmers were hoping that the price could breach the ₹200-level. The price had risen to over ₹190 about a fortnight ago. Farmers had expressed the hope that the price would at least hold steady as supply had been short.
One of the reasons being cited for the fall in price is the increased tapping. With the withdrawal of a prolonged rainy season, farmers have began to tap rubber trees in right earnest. However, the long spell of rain and the onset of the dry season has seen rubber trees shedding leaves and latex yield being reduced considerably, said Pius Cherian Pottamkulam, a rubber grower.
The peak season for rubber production is usually between November and February. However, changes in climatic conditions had seen heavy rain late into the year, resulting in loss of tapping days as well as reduction in yield. However, the rubber growers had a considered view that the difficulties associated with import and a short supply would help sustain the price.
The rubber industry had approached the government to allow import of natural rubber at concessional rates, which had not been considered by the government. At the same time, a shortage of containers had resulted in a hike in freight rates, preventing profitable import of the commodity, Mr. Pius said.
Shajimon Jose, a rubber grower in Kanjirappally, said the price of the commodity in the international market had ruled low amidst allegations that the industry players were trying to suppress the price. The January-February season used to see a peak in production in the past but the present climatic conditions would see a drop in production, he said.
The farmers have also complained of a severe reduction in latex yield from trees because of the severe heat conditions.
Figures from the Rubber Board showed that the average price of rubber was ₹125.95 during 2018-19; it went up to ₹135.22 during 2019-20. There are 8.22 lakh hectares under rubber in the country of which 6.9 lakh hectares comprise tappable area and the annual production is around 7.15 lakh tonnes.
Meanwhile, Rajiv Budhraja, Director General of Automotive Tyre Manufacturers’ Association, told The Hindu that the demand scenario had weakened for the tyre industry in India. The tyre segments that were natural rubber-intensive such as medium and heavy commercial vehicles and tractors were under stress. The latest data showed that truck and bus tyre production had entered the negative territory in October 2021 with 2% drop in production. In the case of tractor front tyres, the drop in production in October 2021 was 26%. The trend of decline in production seemed to have continued in November and December too, he said.
