Rubber at all-time high of Rs 137/kg

According to leading dealers in Kerala, the prices were bound to cross Rs 140, but the slowdown in the global market affected the sentiments of the domestic market.

A turnaround was witnessed in the global rubber market, with Tocom quoting Rs 131 and Bangkok registering a drop to Rs 135 for the RSS-3 grade, the global equivalent of India's RSS-4.

There is speculation that the paradigm shift in the international market might lead to a sharp increase in import and a drop in exports. The situation was the reverse for the last 3-4 months, as the Indian prices were lower by Rs 7-8 a kg, which led to an increase in exports and drop in imports.

In the first quarter of the current financial year, exports registered an increase of 26 per cent at 13,136 tonnes as against 10,410 tonnes in the same period of the previous financial year while imports fell 16.5 per cent at 20,233 tonnes as against 24,190 tonnes.

Although production is in full swing in most of the rubber plantations of the state, supply to terminal markets such as Kochi and Kottayam is limited even with the high prices.

Traders say that rubber is being stocked on anticipation that prices may touch Rs 150 a kg, which explains the current short supply. Production was up by 23.8 per cent in Q1 at 1,77,750 tonnes while consumption registered a growth of 6.4 per cent.