ERJ staff report (BC)
Mumbai, India – Heavy rain in Kerala for the past two months has badly hit rubber production, leading to sharp rise in local prices, in sharp contrast to the bearish global trend, reports the Business Standard.
While supply has been declining, it has dropped drastically over the past two weeks, says the report, triggering the price of RSS-4 grade to shoot up to Rs195 (€2.40) per kg. Bangkok on 6 August quoted just Rs 149 (€1.84) for the same grade. The difference is cited as the greatest for ten years.
Kochi-based traders are reported as saying that rubber is not available in the market even at this price. N Radhakrishnan, a leading rubber trader and former president of Cochin Rubber Merchants Association, told Business Standard that rubber is not available even at Rs 200 (€2.46) per kg.
Industry sources indicated importing rubber is now a viable option because of the price difference, with heavy monsoon showers and strong winds having virtually stopped tapping in almost all rubber plantations across Kerala.
The Automotive Tyre Manufacturers Association has asked the Indian government to allow the import of natural rubber on a tariff rate quota (Trq) basis.
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Full article from Business Standard