Kottayam: The latest market reports suggests that the merriness and cheer that had returned to the rubber farmers in Kerala was meant for a short span of time as the natural rubber prices in the domestic market plummeted by Rs 60 in just three months causing distress and deep concerns among the lakhs of rubber farmers in the state. The price had risen in month of August to a record high where it was nearing Rs 250 per kilogram.
After reaching an all-time high of Rs 247/kg on August 9, rubber price plummeted to Rs 187/kg as of Monday, causing panic among both farmers and dealers.
Given the extreme volatility prevailing in domestic rubber market, the Rubber Board has scheduled a meeting with major manufacturers on October 28 to address the situation. Its intervention comes after representatives of the Indian Rubber Dealers Federation (IRDF) met with Rubber Board executive director M Vasanthagesan and other officials on Monday.
“This is a highly unfortunate and unprecedented situation for the rubber farmers. Even earlier there was multiple instances of price volatility. But a steep reduction of Rs 50 had never happened till date. We hope that the central government will look into the matter seriously and come up with a solution”, said Ousapechan, a rubber farmer based in Kannur.
Rubber dealers and rubber society managers attribute the price drop to the abstention of manufacturers, especially tyre companies, from market. This has put the rubber industry into a severe crisis, prompting dealers to seek the board’s assistance.
“For the past eight days, none of the tyre companies have purchased rubber. They are refusing to buy the stock they have already ordered,” said Biju P Thomas, secretary, IRDF. According to Rubber Board statistics.
As per latest data, the rubber prices dropped by 17 percentage in October alone.
The Rubber Board also views this situation as serious, especially when tapping season is reaching its peak.
As the tapping season is all set to start, the situation is leading to a free fall in rubber prices, which could have a serious impact on the entire rubber sector. The board intends to advise manufacturers to lift rubber from the market to maintain an equilibrium,” said an official with the board.
Notably, the Rubber Board’s latest statistics show a 22% rise in rubber imports from April to September, with 3,10,413 metric tonnes imported in this period in 2024-25 compared to 2,54,488 metric tonnes in the same period in 2023-24. The companies also claim to have a significant inventory of finished products, which is why they have decided to temporarily abstain from market.
To address this, the board is planning to promote rubber export. Sources said it is organizing a meeting with exporters next week to discuss this. “Despite current challenges, there remains a captive demand in domestic market. Even limited buying can help prevent free fall of prices,” said an official.
By focusing on exporting rubber and maintaining domestic demand, the board aims to stabilize the market and prevent further decline in prices.
However, a section within the rubber board believe that a government level intervention on the matter is necessary to control the free fall of the rubber prices in the domestic market.
