TN: Rubber prices rise in Kanyakumari as heat reduces latex output

Nagercoil, Sep 30 (IANS) Rising rubber prices have brought cheer to farmers in Tamil Nadu’s Kanyakumari district, even as hot September weather has reduced latex production and restricted the benefits of the market upswing.

The price increase comes amid supply shortages in Kanyakumari and neighbouring Kerala, with traders pointing to sustained industrial demand as another factor keeping the market firm.

Growers reported that latex production in Kanyakumari had fallen by as much as 30 per cent over the past two weeks because of the heat. The decline has affected the quantity available for sale despite the favourable prices.

Occasional moderate showers in the district’s hilly areas have provided some relief, helping latex yields recover slightly. However, the improvement has come after a period of reduced output.

In the Kottayam market on Tuesday, the dealer prices of RSS-4 rubber stood at Rs 271 per kg, while RSS-5 fetched Rs 266 per kg. ISS-grade rubber was quoted at Rs 256 a kg.

The Rubber Board’s published prices were higher than the dealer quotations. Its rates for RSS-4 were Rs 279 per kg and for RSS-5, Rs 274. The reported price of 80 per cent processed latex was Rs 191 a kg.

The upward trend has been welcomed by rubber growers across Kanyakumari. Nevertheless, their earnings depend on both the price received and the volume of latex harvested, making the recent production decline a concern.

A rubber trader in Kulasekharam said the market had been influenced by developments affecting synthetic rubber, as well as the gap between domestic natural rubber production and consumption.

He attributed an earlier rise in synthetic rubber prices to disruptions in crude oil supplies to India during the conflict between the United States and Iran. Since synthetic rubber is manufactured from petroleum, higher costs have also helped lift natural rubber prices, he said.

Although crude oil imports had subsequently stabilised, rubber prices continued to climb, the trader added.

He said growth in the automobile industry had increased demand for rubber, while domestic production remained insufficient to meet requirements. That imbalance was continuing to support higher prices. Prices could soften if the gap between production and demand narrowed, he said. For now, farmers are benefiting from stronger prices while watching whether rainfall brings a sustained recovery in latex output after the spell of unusually hot weather.

–IANS

aal/dpb