North East monsoon hits natural rubber production; prices ruling steady

The onset of the North East monsoon with heavy rains has impacted natural rubber production in many growing belts of the central Travancore region.

The farming community said that early morning showers have disrupted tapping even in rain-guarded trees, besides the leaf fall in the winds affecting the yield. They say that the declining production has not benefited the prices with the rates of RSS IV grades ruling at between ₹180-190 per kg for a long time.

George Valy, president of Indian Rubber Dealers Federation said the consuming industry is not offering better prices to procure natural rubber from the domestic market even when the prices are ruling lower. There is a concern among the farming community as the prices are not moving up during the declining production period. This has prompted many farmers to even think of keeping away from tapping unless they realize a better price for their produce, he said.

Valy pointed out that the consuming industry is going ahead to import natural rubber where the prices are ruling lower than the domestic rates. The imports witnessed a 35 per cent increase in September with 95,000 tonnes comprising both natural rubber and compounded rubber. Tyre companies, he said, are offering lower prices compared to market rates.

Official sources attributed the reasons for the fall in domestic natural rubber prices to unprecedented scale of import of compounded rubber. The import of the compounded rubber during April to July 2024, which stood at 68,889 tonnes, has increased to 1,01,253 tonnes during the corresponding period of 2025-26. Import duty of compounded rubber at concessional rates from ASEAN countries is 0-5 per cent.

Natural rubber imports are also on the rise during the months from June to September with the figures stands at 36505, 42482, 54278 and 68632 tonnes, resulting in lower levels of procurement form domestic market.

The prices in international markets recorded on a downward trend during current month and domestic market prices also have moved in tandem with this.

Though the natural rubber production has increased from 2,83,000 tonnes (April to August 2024) to 2,94,000 during the same period in 2025-26 showing an increase of 3.9 per cent, the consumption also had increased from 5,91,000 (April to July) to 6,06,000 tonnes during the same period in 2025-26 registering a growth of 2.5 per cent.

The US announcement of reciprocal tariff of 25 per cent and additional penal tariff of 25 per cent has impacted a negative sentiment in Indian rubber sector, the sources added.

The farming community urged the government to revise the ASEAN treaty to impose duty for compounded rubber to benefit the farmers.

Read More: Here