Rubber prices continuous observe a downward trend, farmers urge government intervention

Rubber Producer Societies are appealing to the State and Union governments to support rubber farmers, as domestic rubber industries increasingly rely on imports. Domestic buyers are reportedly avoiding local markets, instead sourcing rubber internationally at lower costs. On Thursday, the price of natural rubber (RSS4) in the Kottayam market was recorded at Rs. 184 per kg, heightening concern among farmers as prices continue to decline.

On the similar note, the All India Kisan Sabha (AIKS) has raised serious allegations against tyre manufacturers, accusing them of forming a cartel to manipulate natural rubber prices, thereby affecting farmers' livelihoods. According to AIKS, tyre companies have recently halted natural rubber purchases to create panic in the market, as corroborated by statements from Kerala traders. Additionally, AIKS points to a 22% year-on-year rise in natural rubber imports between April and September, suggesting that tyre manufacturers lobby for duty-free imports when domestic prices climb but refrain from supporting exports when international prices are higher. AIKS is calling for immediate government intervention to address these practices.

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The National Confederation of Rubber Producer Societies has highlighted a substantial price difference of Rs. 35 - Rs. 40 between international and domestic rubber rates, underscoring the need for government procurement to stabilize the local market. Since 2013, however, there has been no government-backed buying of natural rubber, which has enabled industries to capitalize on reduced import duties from ASEAN countries, primarily importing compounded rubber.

With the domestic rubber market now nearly stagnant, the Confederation has called on the Rubber Board and government authorities to intervene and provide necessary support for local producers.