'Rubber prices may stay high'

Natural rubber prices are likely to stay high in the medium term, as the year is expected to end on a marginal supply deficit, said Sajen Peter, chairman of the Rubber Board.

Prices are also expected to stay firm in international markets for the rest of the year, and this will be reflected in the domestic market, he said.

Peter was addressing the meeting of the United Planters of South India here Monday.Global consumption of natural rubber for 2005 is estimated at 8.823 million tonne, according to the International Rubber Study Group, he said.

However, the Association of Natural Rubber Producing Countries anticipates worldwide production for the year at 8.8 million tonne.

"This means the year is likely to end on a marginal supply deficit of 23,000 tonne," Peter said.