Rubber prices to remain above Rs 200 kg this week

Natural rubber prices in Kottayam and Cochin market had touched a record high of Rs 200 per kg on Friday.

Rubber prices that have surged to a record high of Rs 200 per kg last week are likely to stay at that level,on disruption of rubber production due to continous rains,coupled with increased demand from the tyre manufacturers in the automobile sector.

Natural rubber prices in Kottayam and Cochin market had touched a record high of Rs 200 per kg on Friday. The prices remained constant on Saturday.

“Continuous rain has been affecting the production,pushing the rubber price to an all time high of Rs 200 per kg.

As weather seems unlikely to improve in next days,I don’t think prices will go down below Rs 200 this week,” Indian Rubber Dealers Federation Treasurer Ibrahim Jalal said.

He said that the surge in international prices of rubber was also fueling the domestic prices of the commodity.

Floods in Thailand and Malaysia have affected the rubber production,thereby,pushing its prices across the globe.

Meanwhile,Indian Meteorological Department has forecast that Kerala,which accounts for nearly 90 per cent of the country’s natural rubber production,may get more rain in next three-four days.

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Rubber prices in the country have been continously rising for the last two months on the concerns of production shortage.

According to the Rubber Board estimates,India is likely to produce 8.93 lakh tonnes of rubber in the current fiscal,while consumption would be around 9.78 lakh tonnes.