Prices of natural rubber today rose by Rs 4.50 to Rs 169.50 a kg due to increased demand from domestic tyre industry and high global rates.
The prices have risen by over Rs 20 a kg in last 15 days. Natural rubber (RSS-4 variety) price today quoted at Rs 169.50 a kg at markets of Kottayam and Kochi against Rs 149 a kg on May 8.
"Very high demand from domestic tyre makers and political unrest in Thailand which is affecting tapping there, are the major causes of rising rubber prices in India," Indian Rubber Growers Association General Secretary Siby J Monippally said.
Thailand is one of the major suppliers of natural rubber.
A political group, Red Shirts, in Thailand has been protesting since mid-March demanding the immediate resignation of Prime Minister Abhisit Vejjajiva, the dissolution of Parliament and new elections.
"There is tight supply of the commodity from Thailand due to political unrest there. It is causing international prices to surge, which in turn is pushing up domestic rubber prices," All India Rubber Industries Association Senior Vice President Vinod said.
He also attributed the rising prices to a demand-supply mismatch.
Prices of natural rubber (RSS-3 variety) in Bangkok have been on upward trend since May 10 and have gained over Rs 20 since then to quote at Rs 175.65 a kg as on today.
When asked if rubber prices would continue to soar on the domestic front, Monippally said that rates might not keep on rising for long and would soon come in the range of Rs 160-165 a kg in the coming weeks.
Vinod, on the other hand, declined to comment on natural rubber rates going forward, saying that all price projections have gone awry. "It is difficult to say anything as the market is very volatile now."