Rubber prices at 8-year high; likely to increase
Rubber prices in India are at an eight-year high, and trends indicate that they will rise further.
On August 18, the RSS-4 rubber variety was priced at Rs 178.50/kg. Rubber prices peaked at Rs 196 in July 2013, after which they began to fall.
Prices are expected to rise in the range of Rs 180 to Rs 185. The rainy season disrupts the rubber tapping process, and as a result, rubber sheets do not reach the markets, resulting in high prices. Similarly, many cultivators are hoarding stock in anticipation of high prices. Farmers have high hopes after the government announced a base price of Rs 170. They believe that interest rates will remain stable.
Meanwhile, the price of rubber latex has reached an all-time high of Rs 180/kg. People selling latex are also in high demand right now. Similarly, exports have been hampered for a variety of reasons, contributing to higher prices.
On Wednesday, the price of RSS-3 rubber (equivalent to RSS-4 in India) was Rs 143.74/kg in Bangkok, where international rates are determined. Despite the fact that traders in the export business rely on block rubber, they must pay freight and export duty. This process is also hampered due to a lack of containers. As a result, they are also obtaining small amounts of rubber from the country.