At Rs 112 per kg, India’s RSS 4-grade rubber price has skidded to a six-year low. The price drop is still an effect of China’s decline in demand of Indian rubber.
The decline dampened the festive mood of the Onam festival in Kerala, where majority of the population are rubber growers.
“The rubber farmers are passing through a severe crisis and this has impacted even replanting activities and use of manure, de-weeding, etc in the cash-strapped sector.” Said George Valy, President, Indian Rubber Dealers Federation “there will be better days ahead with prices expected to go up following the improvement in consumption in China and correction in crude prices”.
However, the crisis would just affect the rubber industry and would not have a major effect in the economy, said N Radhakrishan, Advisor of the Cochin Rubber Merchants Association. He said the Rs112 is still above the Rs90/kg price for the same rubber grade from other countries.
“We are in a global economy, we cannot charge higher prices to our own industry and make it uncompetitive,” he said.