RUBBER production in India has been affected by heavy rain. For the previous two months, affected areas are mostly in Kerala, and in the high ranges of the State.
Local prices for rubber have shot up, irrespective of the world trend. Supply had dropped drastically during the last two weeks, jacking up the price of RSS-4 grade to to Rs 195/kg, against the bearish price mode in the global market. Bangkok also quoted a price of Rs 149.
Acute shortage for the commodity has also been reported and rubber based industries are in difficulty at maintaining their inventory and production. The scope for import of rubber is tremendous now as the gap ensures price advantage even at duty paid imports, said industry sources. Heavy monsoon showers and strong wind have literally stopped tapping in almost all plantations across the state. This is more visible in districts like Kottayam, Pathanamthitta, Idukki and Kannur.
Damage due to heavy rain is more serious in rubber plantations as hundreds of trees were uprooted and rain guards were destroyed. Workers are not able work in plantations as risk is too high.
The tyre industry, which accounts for 65% of the country’s total NR consumption is mulling importation of natural rubber(NR) this year as availability of local rubber depletes and prices increase, which has gone up by some 26% than international prices. Moreover, the required quantity and grade of natural rubber are unavailable, according to the Automotive Tire Manufacturers Association (ATMA). The asso0ciation said the Government may allow import of NR on a Tariff Rate Quota (TRQ) basis to ease the domestic availability situation. T