The natural rubber market has turned bullish with prices touching a record ₹253 per kg, while some transactions in the Kottayam market were reportedly concluded at around ₹260 per kg amid tight supply conditions.
George Valy, president of Indian Rubber Dealers Federation, attributed the sharp rise in prices to the war situation in West Asia and extreme temperatures in plantation regions coupled with lack of rainfall, which affected production levels.
However, he said that the rally may ease in the coming days as tensions in West Asia show signs of easing and heavy summer showers received in rubber-growing regions over the past few days are expected to improve production.
He also pointed out that the higher price levels have encouraged tapping in previously untapped areas, which could increase the arrival of raw materials into the market.
In sync with global trend
Traders pointed out that the rising prices in the domestic market are in tandem with the upward trend in global prices, which is ruling at ₹288 per kg.
The prices have been consistently high due to supply shortages and sustained industrial demand, which is supporting the upward trend.
Tapping has stopped in major producing areas, reducing supply. High oil prices and disruptions in South-East Asian production have driven international prices up, further impacting domestic rates.
There are also reports of farmers holding the stock in view of the rising prices, he said adding that they could not hold it for long as it affect the quality of the raw material. There was a pause in production during Feb-March-April months as the rising temperature hit tapping in a big way.
With the United Democratic Front coming to power in Kerala in the elections, the farming community is now pinning their hopes on the floor price announced for natural rubber in the election manifest at ₹250 per kg.
They are also hopeful that the present rains and the imminent southwest monsoon by mid-May are expected to increase the yield in the current season.
Published on May 8, 2026