Fall in natural rubber prices in India

After a moderate post-pandemic revival, the price of natural rubber (NR) has crashed to a 16-month low of 150Rs per kg (RSS grade 4) in the Indian market.

Reason of sharp fall in prices:

• The current fall in prices is attributed primarily to a weak Chinese demand and the European energy crisis, along with high inflation and an import glut, among other things. 

Natural Rubber:

• Commercial Plantation Crop: Rubber is made from the latex of a tree called Hevea Brasiliensis.
• Rubber is largely perceived as a strategic industrial raw material and accorded special status globally for defence, national security and industrial development.
• Conditions for Growth: It is an equatorial crop, but under special conditions, it is also grown in tropical and sub-tropical areas.
  • Temperature: Above 25°C with moist and humid climate.
  • Rainfall: More than 200 cm.
  • Soil Type: Rich well drained alluvial soil

Natural Rubber in India:

• Commercial cultivation of natural rubber was introduced in India by the British, although the experimental efforts to grow rubber on a commercial scale in India were initiated as early as 1873 at the Botanical Gardens, Calcutta.  
• The first commercial Hevea plantations in India were established at Thattekadu in 1902.
• India is currently the world’s fifth largest producer of natural rubber while it also remains the second biggest consumer of the material globally. 
• About 40% of India’s total natural rubber consumption is currently met through imports.
• The auto-tyre manufacturing sector accounted for 73.1% of the total quantity of natural rubber consumption.