International rubber price continues to rule above local price

Exporters, however, have not been able to take advantage due to lower price quotes from producing countries such as Vietnam

The price of natural rubber in the international market continues to rule above the local market. The price of RSS4 was ₹184 a kg in Kottayam on Tuesday compared to ₹211 in the international market. The price disparity continues even as the Rubber Board is in the midst of efforts to encourage exports from the country.

The Rubber Board had announced an incentive of ₹5 a kg for exports of sheet rubber. The scheme is in operation from March 15 to June 30. The board has also constituted an Export Promotion Cell to address various issues and handhold exporters. Natural rubber exporters having valid registrationcummembership certificate issued by the board and registration for using the Indian Natural Rubber Logo are eligible for availing themselves of the incentive.

Surpassed

The international price of sheet rubber has surpassed the Indian price since mid January 2024. Even though there is a price difference, exporters had not been able to take advantage of it due to the lower price quotes from various producing countries such as Vietnam. Globally, sheet rubber consumption accounts for about 10% with consuming nations being China, Malaysia and Sri Lanka.

Local traders have pointed out that while there is going to be a tight supply situation, price front was not a great cause for optimism in the domestic sector as imports of both block rubber and compounded rubber continued at favourable rates for industries.

George Valy, president of the Indian Rubber Dealers’ Federation, said that tapping might restart only after the rains started. The dry season had seen a virtual standstill in tapping. There was no prediction as to when there would be sufficient rain to pave the way for a favourable condition for resuming tapping, he said.