Natural rubber prices hit record high of ₹300 per kg

Natural rubber prices in the domestic market have reached the ₹300 per kg level for the first time in history. The bullish trend in rubber prices observed over the last few months has now expanded to this historic level. According to the Rubber Board's daily price report, on Monday, 2 October, 2026, the prices of RSS-4 grade Ribbed Smoked Sheet (RSS) rubber were recorded at ₹300 per kg.

According to traders, the actual prices at which major tyre manufacturers purchased rubber were even higher. For instance, a Mumbai-based tyre manufacturer purchased RSS-4 grade rubber at a price of ₹303 per kg. This surge in rubber prices has brought joy to farmers, especially in the Malabar region, where farmers were able to secure prices of ₹300 per kg. However, in Central Travancore, traders purchased rubber directly from farmers at prices up to ₹298 per kg.

As rubber prices in the international market continue to rise, market experts expect this bullish trend to continue in the domestic market in the coming days. Rubber Board officials have attributed this sharp increase to combined factors such as supply shortages in the local market and strong international prices. An official stated that the surge in prices has been driven by supply constraints in the local market and support from the international market. Additionally, the main rubber production season in the local market is yet to begin, which has also helped in driving up prices.

The El Niño phenomenon is also among the reasons for the rise in rubber prices globally, which has affected rubber production in South-East Asian countries and limited the global supply. Furthermore, ongoing conflicts in West Asia have increased pressure on the energy market. High Brent crude prices have also led to an increase in the production cost of synthetic rubber.

On the other hand, the Union Ministry of Commerce has assured that Kerala and other traditional rubber-producing areas will be included in the second phase of the Automotive Tyre Manufacturers Association (ATMA) plantation programme. Currently, this programme is being implemented in the North-Eastern states. This move is expected to boost rubber production in the state. According to Rubber Board Chairman N. Hari, the country's annual natural rubber requirement is 15 lakh metric tonnes, while local production is only 9,00,000 metric tonnes, with Kerala's share being 72%. Replantation is required in some areas of the state, and many plantations remain unutilized. Keeping this in view, the Central Government has decided to include traditional rubber-producing areas, including Kerala, in the second phase of ATMA.

Furthermore, the ₹100 crore that was not spent under ATMA's I-SPEED scheme for rubber gardens and quality rubber production in Assam and Tripura has now been allocated for traditional rubber-producing areas, including Kerala. N. Hari added that the Memorandum of Understanding (MoU) for this allocation will be signed within one month.