Boosting chances of a further increase in prices, natural rubber (NR) production in the country dropped 9.5 per cent during the first seven months of the current financial year. The production fell to 435,125 tonnes during April-October, as against 480,230 tonnes in the same period last year.
According to latest estimates of the Rubber Board, consumption edged up 3 per cent to 536,100 tonnes. The ongoing mismatch between production and consumption is likely to strengthen the bull phase in the NR market. The price of benchmark grade RSS-4 is currently ruling at Rs 109-110 a kg.
The fall in production is a serious concern for rubber-consuming industries since import is not a viable option in the present situation.
Though local traders expect prices to come down, as rubber production would be at its peak during the November-January period. There would be a good supply to the market due to which prices may fall, said a leading Kochi-based trader.
