Rubber price surges to Rs. 213 a kg

It is likely to touch Rs. 230 a kg by this month-end

The price shot up by Rs. 57 a kg in the past nine months

The price in international market was Rs. 239.42 a kg on Friday

MANGALORE: Price of sheet rubber (RSS grade IV) surged to Rs. 213.50 a kg in Dakshina Kannada on Friday with speculations rife that it is likely to touch Rs. 230 a kg by the month-end.

The rubber price shot up by Rs. 57 a kg in the past nine months. In the first week of this financial year (April, 2010), it was Rs. 156 a kg.

According to the website of the Rubber Board, the international price of RSS grade IV rubber in Bangkok was Rs. 239.42 a kg on Friday.

Constant hike in prices of sheet rubber has drawn the attention of the banking sector too. Observing it, South Canara District Central Cooperative (SCDCC) Bank Limited has launched a special loan scheme for purchase of rubber plantations, purchase of land for cultivating rubber, cultivating rubber in existing land and maintenance of rubber plantations.

Belthangady Taluk Rubber Growers' Marketing and Processing Cooperative Ltd., Ujire, a prominent procurer of rubber in the State, and Central Arecanut and Cocoa Marketing and Processing Cooperative Ltd. (CAMPCO), Mangalore, procured grade IV ribbed smoked sheet (RSS) rubber at Rs. 213.50 a kg on Friday. The price of rubber touched Rs. 200 a kg on November 5, 2010. It came down by Rs. 5 a kg by mid-November. It varied between Rs. 195 a kg and Rs. 208 a kg till a few days ago.

Sridhar G. Bhide, president of the Karnataka Rubber Belegarara Hitarakshana Vedike, Ujire, said several factors pushed up the rubber price.

Mr. Bhide, who is also president of the Ujire-based society which owns a rubber by-products manufacturing unit, said the rise in prices of petroleum products had hit production of synthetic rubber. Hence, the demand for natural rubber had increased.

He said that per capita use of rubber products in the country now had been estimated at five kg a person. Two decades ago, Mr. Bhide said, it was a kg for five persons.

A CAMPCO official said many planters had stopped tapping because of winter. Tapping would resume after a month. Future trading (satta bazaar) too played a role in pushing up the prices.

M.N. Rajendra Kumar, president, SCDCC Bank, hoped that the demand for rubber would not come down in the next 20 years as it was a multi-purpose product.

(Source: http://www.hindu.com/2011/01/08/stories/2011010859280100.htm)