Rubber prices cross all-time high

Kottayam:

The price of natural rubber has crossed the double century mark for the first time and reached an all-time high of Rs. 202 per kg in the domestic market here on Monday.

The price of Ribbed Smoked Sheet (RSS) four grade touched the Rs.200 level on Friday owing to fall in production which again led to decline in supply in the national and international markets.

Business was less in the last week following Deepavali holidays and the production has been hit by rains in many rubber growing areas, traders said.

Natural rubber prices were on a gaining spree for the past few days due to continuous rains in central Kerala and in Malabar region which adversely affected tapping, according to Rubber Dealers Federation president George Vally.

Taking into account the spiraling price trend possibility to hoard the commodity cannot be ruled out by a section of the growers on the assumption that the price will rise further, he said.

Vally appealed the growers to release the commodity in the market and help to stem the price level "unseasonable rains continuing wherever rubber grows including Thailand and Malaysia", he said. On Saturday the price has crossed Rs.200 level and reached to Rs. 203 and closed at Rs. 202 on Monday which was Rs. 16.50 higher than the international price. The present trend in price level will decrease only after a change in climate and arrival of the commodity into the market.

The situation remain the same in other rubber producing countries.

The price which had breached Rs. 180 per kg in July 2010 declined to Rs. 160 by august following the declaration of new import duty regime. The price was stabilized around the same level in September. On October 30 the price has reached Rs. 190 a kg and on Wednesday last it was traded at Rs. 195.

On Thursday the price moved up to Rs. 198.

In the global rubber production during the current year upto June 2010 the output rose to 4439 million tonnes from 4192 MT in the same period of the previous year, registering an increase of 5.96 per cent, Rubber Board sources said.

The consumption on the other hand jumped up by 17.8 per cent, from 4259 MT to 5016 MT, the sources said.

(indianexpress.com)