Government today said it has no plans to put a ceiling on maximum price of natural rubber in the wake of a recent spurt in prices following disruption in rubber production due to adverse weather conditions.
"The government is of the view that fixation of any maximum price of natural rubber may not be desirable, keeping in view interests of all stakeholders and sustainable existence of the rubber sector as a whole," Minister of Commerce and Industry Anand Sharma said in response to a written query in Lok Sabha.
The minister said the tyre manufacturers had averred that there was a shortage of natural rubber and demanded a ceiling on the maximum price of natural rubber.
Sharma said that the average prices of natural rubber in October 2010 had jumped by 66 per cent to Rs 181.12 per kg as against Rs 108.9 per kg in the corresponding period last year.
"The main reasons for the increase in rubber prices in India...Relatively low market arrivals, increasing demand in the domestic market and persisting adverse weather conditions in the major rubber growing regions of Kerala," Sharma said.
Natural rubber price has been continously rising for the last two months and have touched all time high of Rs 206 per kg in the domestic market, as continous rains have disrupted the rubber collection in Kerala, which accounts for 80 per cent of the country's production.
Rubber prices had also witnessed the similar trends in global market as floods and cyclone have damaged rubber plantation in key rubber growing countries such Malaysia and Thailand.