Mangaluru: The Indian rubber industry is witnessing a much-needed revival as natural rubber prices have surged significantly after 13 years of decline. This rise in prices, driven by increasing international market rates and local supply constraints, has brought renewed hope to rubber growers, particularly in regions like Kerala and Karnataka.

A Long-Awaited Resurgence

In 2011, natural rubber prices peaked at Rs 242 per kg, providing substantial returns to growers. However, the following years saw a steady decline in prices, plummeting to Rs 149 per kg by 2023. This dramatic drop severely impacted the livelihoods of rubber farmers across the country, leading to widespread economic distress in rubber-growing regions.

This year, however, the tide has turned. The price of RSS 4 grade rubber has risen to Rs 239 per kg, while RSS 5 grade is fetching Rs 234 per kg. Even latex prices have seen a boost, now standing at Rs 165 per kg. This surge in prices is attributed to the increasing demand for natural rubber in both domestic and international markets, coupled with a reduction in supply due to heavy rainfall in key rubber-producing regions like Kerala and the coastal and Malnad districts of Karnataka.

The Demand-Supply Gap

India’s natural rubber production currently stands at 8.57 lakh tonnes, while consumption has soared to 14.16 lakh tonnes, resulting in a demand-supply gap of 5.59 lakh tonnes. This imbalance has further fueled the price rise, as industries scramble to secure their rubber supplies amid dwindling availability.

“The demand for natural rubber has increased from the industries. During the lean period (monsoon), prices normally go up,” explained M Vasanthagesan, Executive Director of the Rubber Board, in a statement to Deccan Herald.

Government Support and Initiatives

The Indian government has been proactive in supporting the rubber industry through various initiatives aimed at boosting production and improving agricultural practices. The Rubber Board, under the Union Ministry of Commerce and Industry, has been instrumental in these efforts.

“The Union government, through the Rubber Board, is providing financial assistance for the expansion of area under rubber cultivation. Measures such as the release of clones with higher yield, assistance for adopting good agricultural practices like spraying of chemicals for disease control, and rain-guarding of trees are being implemented,” Vasanthagesan added.

These measures are already showing results. Union Minister of State for Commerce and Industry Jitin Prasada recently informed the Rajya Sabha that natural rubber production in Karnataka had increased from 41,550 tonnes in 2019-20 to 52,000 tonnes in 2023-24. This rise in production is a testament to the effectiveness of the government’s interventions.

Challenges and Adaptations

Despite the positive trend in prices, rubber growers still face significant challenges, particularly during the monsoon season. The heavy rains make it difficult to tap rubber, as water entering the tapping area can lead to the growth of fungus, which can severely damage the trees. To combat this, some growers have adopted rain guards to protect their trees during tapping.

“Farmers are selling latex as it is difficult to dry it during the monsoon. Purchasers are coming to our doorsteps to collect the latex,” shared a group of growers. This direct purchase method has provided some relief to farmers, ensuring that their produce is sold despite the adverse weather conditions.

Moreover, the central government has introduced financial aid schemes for growers and organised training programmes on scientific methods of harvesting latex and processing it into sheet rubber. These initiatives aim to improve the quality and yield of rubber, further supporting the industry’s recovery.

Looking Ahead

The resurgence in rubber prices has injected new life into an industry that has long struggled with declining returns. While challenges remain, particularly with weather-related disruptions, the combined efforts of the government, industry stakeholders, and the resilience of the growers themselves are paving the way for a brighter future.

As demand continues to rise and supply remains constrained, the outlook for natural rubber in India appears promising. For the thousands of growers who have endured years of hardship, the current price surge is not just a temporary relief but a potential turning point towards sustainable prosperity.