Rubber prices tumble

COMMODITY SPIKES

Natural rubber market is currently going through a bear phase despite lower off seasonal production. Price of bench mark grade RSS-4 plummeted to Rs 94 a kg while that of the un-graded varieties quoted at Rs 91 paving way for further drop in prices in the coming weeks.

According to leading Kochi-based dealers, it was surprising to note the market was on a bearish note even as it entered the off season. A leading trader said prices were being manipulated through the futures market and hence the current downward movement of the price line.

During the main season (October-December), prices increased giving the impression that during the off season price of RSS-4 grade would cross Rs 110 a kg.

There had been widespread propaganda that the price would even cross Rs 150-mark by March-April. Such expectation has led to piling up of stocks in order to release in the off season. But to the dismay of the growers, their expectations didn't materialise.

Traders said that it happened due to a planned move by the industry through the futures trading in order to sabotage the market during the off season.

Rubber Board had cautioned the growers about this, but growers then firmly believed price would cross the Rs 110-mark. During December 2006, price of RSS-4 had crossed Rs 100 and even touched Rs 102 a Kg.

Meanwhile, the monthly average production has dropped to 50,000 -52,000 tonne as tapping of trees has come to an end in most parts of Kerala.