NR at Rs 110 a kg, poised to go higher

Domestic NR markets are poised for further appreciation in prices as market sources indicate higher demand. However, some experts said there would be a correction at the Rs 112-113 level and prices RSS-4 could stabilise near Rs 110 for the next few weeks.

The domestic rubber market had quoted Rs 115 a kg, the all-time high in 2006. Global markets are also moving in tandem with the Indian rates. Demand is on the rise in most Asian countries, especially China.

As prices are moving in a higher band, production is in full swing now and there is no shortage of rubber. Tapping has been recommenced in most of the plantations in Kerala thanks to high prices.

The summer showers have come as a boon for rubber plantations which is not the case for other cash crops where rain has severely damaged production.

There would be good production during April and May and shortage for natural rubber is not expected during the lean season. The domestic market has a stock of 174,000 tonnes which might touch a level of 200,000 tonnes by month-end.

Production is expected to pick up sharply by June when the monsoon season begins in Kerala. A paradigm shift in pricing pattern is expected only then.