The Rubber Board has convened a meeting of exporters on March 15, 2024 to explore opportunities for export as the price of natural rubber has climbed steeply in less than a week, widening the price gap between the domestic and international markets.
According to rubber dealers in Kottayam, the price of rubber in Bangkok has gone up to more than ₹211 a kg, while the domestic price is ₹174.
“The difference is a big incentive for exports,” said George Valy, president of Indian Rubber Dealers’ Federation.
He said the current indication is that there is a shortage and the price might move further up.
Babu Joseph, secretary of the National Consortium of Rubber Producer Societies, demanded that the price gap in the national and international markets has touched an all-time record, indicating that imported rubber price will cost much more than the domestic produce. This includes the price in Bangkok, plus import duty of ₹30 and estimated additional expenses of ₹15, he said in a statement.
Producers want the Rubber Board to procure rubber at a higher price and export it. The consortium demanded that political parties must come to the aid of the rubber farmers at the earliest.
Apprehension of dealers
However, a rubber dealer said there is some apprehension that since Indian exports had slowed down over the last few years, finding ready buyers in the international market may not be easy, especially on long-term contracts because prices may fluctuate, plunging the contracts into serious problems.
However, there is an open chance to find buyers and the stakeholders should together explore the opportunities to help the farmers, the dealer added.
Rubber Board sources said that export has seen a lull since 2016-17. Latex is exported to European countries and sheet is mostly exported to Asian markets, including China. The 2016-17 financial year saw an export of nearly 21,000 tonnes.
Board sources said India is expected to produce around 8.7 lakh tonnes during the current financial year (2023-24) and an estimated 7.3 lakh tonnes have been produced till January this year.
Board data also showed that projected export during 2022-23 was 3,700 tonnes against production of 8.39 lakh tonnes.
