Domestic Rubber Prices in Kerala Surpass International Rates Amid Supply Chain Challenges

Recently, there has been a notable development in the rubber market as the domestic prices in Kerala have exceeded their international counterparts. For instance, the RSS4 grade variety of rubber is priced at around Rs 185 per kilogram in Bangkok, whereas the same variety commands approximately Rs 204 locally.

This shift comes amidst a surplus of rubber due to a bountiful harvest in Thailand, coupled with abundant availability in the global market, thereby exerting downward pressure on international prices. Conversely, over the past year, countries like Thailand, Malaysia, and Indonesia have faced challenges with tree diseases affecting rubber production, causing prices to drop internationally.

Despite this favorable pricing scenario, tyre companies are facing constraints in capitalizing on these opportunities. The current bottleneck lies in the logistics sector, particularly the shortage of shipping vessels and containers, which impedes their ability to procure rubber from global sources efficiently.

The disparity between domestic and international rubber prices underscores the complex dynamics of the global rubber trade and its impact on local markets. As the situation evolves, stakeholders in the industry are closely monitoring developments to navigate through these challenging times effectively.

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