For the rubber plantations in Tamil Nadu, most of which are in Kanniyakumari district, getting permissions for replanting takes several months resulting in losses.

Kenanga Research has maintained its “neutral” rating on the glove sector and said it believes the worst is over in terms of earnings downgrades for the sector, underpinned by easing cost pressures and savings emanating from decommissioning of older plants moving into the second half of calendar year 2023 (2HCY2023).

Japanese rubber futures climbed on Friday on rising oil prices and as investors found comfort in the prospects of top consumer China rolling out further stimulus. The Osaka Exchange (OSE) rubber contract for February delivery closed up 0.3 yen, or 0.1%, at 234.6 yen ($1.58) per kg. The benchmark contract dipped 0.1% this week after a fifth consecutive weekly gain. The rubber contract on the Shanghai futures exchange for January delivery rose 140 yuan, or 1%, to finish at 14,255 yuan ($1,952.37) per metric ton.

The nation is currently the eighth largest rubber supplier to the Japanese market, behind only Indonesia, Thailand, the Republic of Korea, Singapore, and the United States, according to the Import-Export Department under the Ministry of Industry and Trade.

Indonesia and Malaysia are determined not to lose the palm oil market in India, the biggest importer of the commodity, due to perceptions of their products being unsustainable.

Sri Lanka’s natural rubber output may drop to 60 million kilograms in 2023, hit by a leaf disease, an industry body has warned, calling for urgent measures help the sector.

In partnership with Agridence, SGX Commodities has launched a pioneering SIR20 physical spread index for Physical Natural Rubber (NR). This spread index is derived from physical rubber trades on the Agridence trading platform, following an index methodology that leverages on industry expertise and knowledge, with strong endorsement from a panel of industry representatives appointed by Agridence as Board of Advisors.

Agridence (AGD), the Singapore-based technology provider founded in 2018, has marked a significant achievement in its journey to digitalize natural rubber supply chains and to deliver data-driven services to the industry. As of this week, the platform has hit 1 million tons in natural rubber trades.