Rubber price touches record ₹300 a kg

RSS-4 grade ribbed smoked sheet (RSS) rubber was quoted at ₹300 a kg on October 2, 2026. | Photo Credit: FILE PHOTO

The price of natural rubber in the domestic market has touched the historic ₹300 a kg mark for the first time, extending a rally that has gathered pace over the past few months. According to the Rubber Board’s daily price report, RSS-4 grade ribbed smoked sheet (RSS) rubber was quoted at ₹300 a kg on Monday (October 2).

Traders said actual procurement prices offered by major tyre manufacturers were even higher. A Mumbai-based tyre manufacturer, for instance, bought RSS-4 grade rubber at ₹303 a kg. The rally has brought cheer to growers, particularly in the Malabar region, where farmers were able to fetch ₹300 a kg. In central Travancore, however, traders procured rubber directly from farmers at prices of up to ₹298 a kg.

With international rubber prices continuing their upward trajectory, market experts expect the bullish trend to persist in the domestic market in the coming days.

Rubber Board officials attributed the sharp rise to a combination of factors, including tight domestic supplies and firm international prices. “The supply crunch in the domestic market, coupled with support from the international market, are the primary reasons for the surge. The peak production season in the domestic market is yet to begin, which has also worked in favour of prices,” an official said.

Global production hit

The El Niño phenomenon has affected rubber production across Southeast Asian countries, tightening global supplies and pushing up international prices. The conflict in West Asia has added to the pressure on energy markets, with higher Brent crude prices driving up the production costs of synthetic rubber.

Meanwhile, the Union Commerce Ministry has assured that Keralam and other traditional rubber-growing regions will be included in the second phase of the Automotive Tyre Manufacturers Association’s (ATMA) plantation programme, which is currently being implemented in the northeastern States. The move is expected to give a boost to rubber production in the State.

“While the country’s annual natural rubber requirement stands at 1.5 million metric tonnes, domestic production is only around 9,00,000 metric tonnes, of which Keralam accounts for 72%. Several areas in the State require replanting, while many plantations remain untapped. Recognising this, the Centre has decided to include traditional rubber-growing regions, including Keralam, in the second phase of ATMA’s plantation programme.,” said N. Hari, chairman of the Rubber Board.

In addition, ₹100 crore left unspent under ATMA’s I-SPEED scheme for rubber plantations and quality rubber production in Assam and Tripura has been earmarked for traditional rubber-growing regions, including Keralam. An MoU for the allocation will be signed within a month, he added.

Published - November 02, 2026 07:57 pm IST