India, the 4th biggest producer of rubber in the world is likely to extend its gains this week as the demands for it burgeons and as the farmers slash supplies, foreseeing prices will rise a long way.
Last week, the price of the spot rubber in India rose 6 percent while futures jumped 12 percent, reflecting the gains the world markets that rallied after the aggressive economic stimulus program of Fed.
The key October rubber contract on India’s National Multi Commodity Exchange was up 0.4 percent at 19,500 Indian rupees (US$360) per 100 kilogramme by 0753 GMT, after rising to 19,598 rupees earlier in the day.
The spot price of the most-traded RSS-4 rubber (ribbed, smoked sheet) in the Kochi market in Kerala rose 3.4 percent to 19,310 rupees per 100 kilogramme.
A member of the Indian Rubber Dealers Federation has said that the price of rubber everyday is climbing by 1 to 2 rupees per kilogram giving the farmers a reason to put a pause to the supplies as they are hoping for the price to climb to up to 200 rupees per kilogramme.
It can be reminisced that India, which imports natural rubber from other Asian countries namely Thailand, Malaysia, Vietnam and Indonesia has fallen its imports last Month to 17 percent.
India is likely to produce 942,000 tonnes of natural rubber this year, up from 899,400 tonnes a year ago. (PRA)