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Fall in natural rubber prices in India

  • Published
    14th Sep, 2022

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. 
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