Rubber price hike rejoices cultivators; irks manufactures

Rubber products manufacturing companies are facing challenges as natural rubber prices have surged by over 33% in first five months of this fiscal year

The steep rise in rubber prices have affected the profits of major manufacturers across the globe. Photographs by Ajeeb Komachi/CSE

Published on:

01 Oct 2024, 12:19 pm

Amid rapid expansion of the automobile industry, the rubber prices have skyrocketed owing to the market dynamics of an imbalance in the supply and demand of raw rubber.

The last time such a surge was recorded was more than a decade back in 2011.

While the manufacturers are irked by the price-rise, farmers who cultivate rubber and sell its dried extract, are rejoicing.

Experts have concluded that the rubber prices have breached the Rs 200/kilogramme mark not because of short-term supply chain disruptions like the COVID-19 pandemic or geopolitical turbulence but due to a marked rise in demand especially by the tyre-manufacturers.

Rubber