A tapper collecting latex from a rubber tree at a plantation in Kanjirappally, Kottayam, considered the rubber heartland. | Photo credit: TH
The onset of the northeast monsoon with heavy rains has affected the production of natural rubber in many growing areas of the central Travancore region.
The farming community said early morning showers have disrupted tapping even in rain-protected trees, besides falling leaves in the wind affecting yields. They say falling production has not helped prices, with rates of RSS IV grades hovering between ₹180 and 190 per kg for a long time.
George Valy, president of Indian Rubber Dealers Federation, said the consuming industry does not offer better prices to buy natural rubber in the domestic market even if prices are lower. There is concern among the farming community as prices do not increase during the declining production period. This has even prompted many farmers to stop tapping unless they realize a better price for their produce, he said.
Valy pointed out that the consuming industry continues to import natural rubber, where prices are lower than domestic rates. Imports rose 35 percent in September, with 95,000 tonnes of both natural and composite rubber. Tire companies, he said, are offering lower prices compared to market rates.
Official sources attributed the reasons for the decline in domestic natural rubber prices to the unprecedented volume of composite rubber imports. The import of the compound rubber during April to July 2024, which was 68,889 tonnes, has increased to 1,01,253 tonnes in the corresponding period of 2025-2026. Import duties on composite rubber at concessional rates from ASEAN countries are 0-5 percent.
Natural rubber imports also increase in the months of June to September, with figures of 36505, 42482, 54278 and 68632 tonnes, resulting in lower purchasing levels in the domestic market.
Prices on international markets showed a downward trend over the past month and prices on the domestic market have also followed suit.
While production of natural rubber has increased from 2,83,000 tonnes (April to August 2024) to 2,94,000 tonnes in the same period in 2025-26, registering an increase of 3.9 percent, consumption has also increased from 5,91,000 (April to July) to 6,06,000 tonnes in the same period in 2025-26, showing a growth of 2.5 percent.
The US announcement of a 25 percent mutual tariff and an additional 25 percent criminal tariff has affected negative sentiment in the Indian rubber sector, the sources said.
The farming community urged the government to revise the ASEAN treaty and impose tariffs on composite rubber for the benefit of farmers.
Published on October 24, 2025
#northeast #monsoon #affects #natural #rubber #production #prices #stable