Natural rubber prices on Thursday touched a new record at Rs 207 a kg in Kerala, on concerns over the domestic supply coupled with rising global rates.
“There is a tight supply situation which has fuelled the price rise and also a spurt in the international prices of natural rubber which are now ruling at Rs 222 a kg,” Rubber Dealers Federation of India President George Vally said.
Natural rubber prices are on a gaining spree for the past few months due to continuous rain in central Kerala and in Malabar region which adversely affected tapping, according to the federation.
Last month, rubber prices had zoomed to a high of Rs 203 a kg but later it came down to Rs 196 a kg.
The rising global prices have also contributed in the increase in domestic rubber rates.
Rubber prices have gone up in the international market due to increase in demand from China, coupled with disruption in production in Thailand, the largest producer, due to floods.
According to the Rubber Board estimates, India is likely to produce 893,000 tonnes of rubber in the current financial year, while consumption would be around 978,000 tonnes.
Recently, the Association of Natural Rubber Producing Countries, which accounts for 92 per cent of global output, has announced that the global natural rubber supply may drop by 3.8 per cent in the October-December period.
