KOCHI,INDIA(Commodity Online): Much to the dismay of the cash-strapped farmers , Rubber prices has taken a deep plunge below Rs 120/kg for the first time since 2009. Benchmark grade RSS-4 quoted Rs 118/Kg on Wednesday.
The global scenario is also bleak with Standard Malaysian Rubber [SMR] dropping to 95 /Kg in the international market. This is likely to deal a heavy blow to local afarmers in India as this variety is a hot favourite among the importers in the country. The futures prices at NMCE are moving in line with the spot market.
Meanwhile, India Rubber Board has said the country’s October natural rubber imports increased 27.7 per cent from a year ago to 36,865 tonnes. The surge in imports is mainly as a result of increased overseas purchases made by tyre makers due to a drop in domestic production.
India’s rubber output in the October plunged 32.6 per cent on year to 58,000 tonnes as some farmers abandoned tapping after prices fell to their lowest level in five years.
India’s natural rubber consumption in the month surged nearly 2 per cent on year to 83,000 tonnes, the Board said in a statement.
Farmers leave tapping for Nutmeg
As the gloom is continuing in the rubber market farmers in Kerala are turning their focus to nutmegs. Nutmeg is providing better prices for the farmers and have not evinced much volatility.
On the back of strong export demand the nutmeg prices have surged in the last few years. But a major portion of the output is spent for domestic consumption.
– Commodity Online
