Crashing prices leave rubber farmers frustrated

The price of RSS-4 grade sheet rubber, which reached a high of ₹247 a kg on August 9, now hovers around ₹180, the lowest since March. With the falling prices affecting their livelihood, growers are now voicing frustration over the inability of authorities to stabilise the market

Just months after a record-breaking surge, rubber growers in Kerala are once again beginning to stare at losses with the price of natural rubber plummeting.

The price of RSS-4 grade sheet rubber, which reached a high of ₹247 a kg on August 9, now hovers around ₹180, the lowest since March. With the falling prices affecting their livelihood, growers are now voicing frustration over the perceived inability of authorities to stabilise the market.

The price drop has largely been attributed to a surge in rubber imports and stockpiling by tyre companies. From April to September, rubber imports rose by 22%, with 3,10,413 tonnes imported in 2024-25 compared to 2,54,488 tonnes in the same period previous year.

In early October, tyre companies halted purchases prompting the Rubber Board to convene a stakeholder meeting to address the deadlock. “While the board urged the companies to remain active in the market, tyre companies have taken a passive approach, purchasing only limited quantities to keep the market somewhat active,” says an official source.

According to him, this sluggish trend is likely to persist, as the companies have sufficient stock to meet their needs for the coming months. “Given the current conditions, prices are unlikely to recover until the end of December,” he says.

In central Travancore, where political discourse is deeply intertwined with the fortunes of the plantation sector, the issue has assumed a political tone with the warring factions of the Kerala Congress stepping in. Blaming the crash on misguided policies of both the Union and State governments, the Kerala Congress led by P.J. Joseph on Thursday staged a protest in front of the Rubber Board office in Kottayam.

The National Consortium of Rubber Producers’ Societies (NCRPS) — an organisation of small-scale growers — too held a demonstration in Nilambur during the day. The organisation is demanding the Union government to address loopholes in the Standard Input Output Norms rates for tyre products to curb the illegal import of rubber.

“With advancements in technology reducing the percentage of natural rubber in tyres, the delay in renewing a notification from the Directorate General of Foreign Trade (DGFT) has led to a doubling of rubber imports under duty-free benefits, which is causing a significant loss to the exchequer and harming farmers,” says NCRPS general secretary Babu Joseph.

Published - November 07, 2024 07:04 pm IST