Global fall in production: Rubber price goes up in international market
Kottayam: The price of rubber is increasing due to the decline in global production. Production has gone down in six countries in 2023. Rubber Board estimates that the price hike trends will continue in the coming months.
Countries like Thailand, Indonesia, Vietnam, China, India and Malaysia have witnessed a fall in production. Figures indicate that global production fell by 1.9 percent. With the Ivory Coast stopping the export of latex (rubber milk) from January 1, the presence of this relatively cheap commodity has decreased in the international market. With this, businesses are turning to procuring rubber sheets.
In Kerala, rain in December and the lower temperature in January reduced the production. Most rubber farmers stop tapping when the leaves of the trees begin to fall.
The retail price of rubber is Rs 155 and the board has published the rate as Rs 160. The best price for rubber was seen in May 2023 at Rs 157. The price began rising again in January 2024 with the reduction in availability of commodities.
Climate change has affected the yield in Thailand. Rain in June and heatwaves in many places between March-April further affected the production. As fungal infection in trees became widespread, production fell. Another reason for this is that over 2.03 lakh hectares of rubber cultivation was abandoned due to the continuous fall in prices in 2020-23. Total exports fell by 9.3 percent in 2023 and production reduced by 4.4 percent.
In Indonesia too, fungal infection turned detrimental and exports fell by 18 percent. Total production here was reduced by 14.6 percent.
In the case of Vietnam, production declined by 1.1 percent. It was 0.9 percent in China, 0.8 percent in India and nine percent in Malaysia. Only the production from the Ivory Coast has increased by 26 percent.
P.C Cyriac, former Rubber Board Chairman, said that if this trend continues, price in India too may increase.