Rubber prices have been increasing constantly, almost doubling last year, and are currently at around Rs 180 per kg in the Indian markets.

Strong demand for rubber from tyre makers, non-tyre makers as well as domestic stockists has been supporting the high prices.

There has been a delay in tapping due to heavy rains in Kerala, Karnataka, etc. Moreover, firm crude oil prices have kept rubber prices higher in the international markets as well.

According to the latest estimates by the Association of Natural Rubber Producing Countries (ANRPC) for 2021, world production of rubber this year has been up by nearly 1.4 percent compared to the previous year but consumption has been much higher at 8.9 percent. So, production and consumption clearly show a mismatch for 2021. And, this may happen in the coming few years as well.

As per Rubber Market Intelligence Group data, in 2022, nearly a 5 percent gain in world consumption is expected. So, while production is expected at 14.5 million tonnes, consumption is expected at 14.7 million tonnes. That is the pattern of forecasts for 2023 and 2024.

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Various global rubber agencies estimate the production numbers to be slightly lower than consumption numbers and therefore, the rubber prices are expected to continue to gain.

(Edited by : Kanishka Sarkar)