The past year saw a disastrous time for the natural rubber industry as prices plunged to a nine-year low. Now, as prices slowly improve, Indian rubber growers are getting ready to raise their tapping activity. But the Association of Natural Rubber Producing Countries says that the recent rally in prices is mostly fuelled by external factors and may only be temporary. Rubber prices started recovering from Rs 91/kg from mid-February and touched Rs 133/kg on Wednesday.
ANRPC secretary general and former Rubber Board chairman Sheela Thomas has stated in the report that apart from seasonal shortage, other factors that helped in the rebound of prices are recovery in crude oil price, delay by US to raise policy rates and the appreciation of the baht, rupiah and ringitt against the dollar. Though tapping is yet to start on a full-scale in Kerala, the pre-monsoon showers that lashed the rubber belt in Kottayam has raised the hopes of growers.
Last year, production fell to 563,000tonnes, the lowest in 20 years and imports peaked to a record 45,4303tonnes. But this time, output is likely to look up given the eagerness shown by growers to resume tapping. “There has been record sales in rain guards indicating that growers are ready to start tapping when the monsoon arrives,” said George Valy, president of the Indian Rubber Dealers’ Federation.
Source: Economic Times