Natural rubber prices have increased during the last three days of last week expecting the United Democratic Front government to win in the Assembly elections held in Kerala.
Remarkable increase occurred in the price-level of RSS 4 grade which has increased by Rs 3 per kg to Rs 32.50 in Kochi. In Kottayam market this variety was traded even at Rs 33. According to market sources, the price will increase atleast to Rs 34 this week.
Best quality lot rubber was sold at Rs 29.25 per kg and the lowest quality was sold at Rs 25.50. ISNR 20 variety was traded at Rs 28.50 per kg during last week.
The growers in Kerala believe that the UDF government can improve the industrial situation of the state and this in turn will help to improve the business which ultimately result in an increase in the price of natural rubber.
Anticipating such a situation the growers are holding the stock and hence there is a shortage in the market especially for the lot variety.
Apart from this due to good summer showers tapping is not in full swing in most part of the state.
During April tyre manufacturers were active in buying RSS 4 grade and at present they are not so active.
During last week non-tyre industries bought good quantity rubber especially the lot varieties. This caused a shortage for lot rubber in the market. The tyre companies are reluctant to buy rubber as the prices are going up.
A good monsoon is expected this year which will further increase the price level in the coming weeks. It is reported that the Rubber Board
