Vinu: Manu, I saw an article in The Hindu BusinessLine today (05.06.2025) about rubber production. It says monsoon might boost it. What’s the latest on that?

Manu: Yes, Vinu. A good monsoon in Kerala has brought optimism among rubber farmers. They’re expecting a 5–10% increase in natural rubber production this fiscal. Last year, production was about 8.57 lakh tonnes.

Vinu: That’s encouraging! But are there any challenges they are still facing?

Manu: A few, yes. One of the main factors is tapping days. George Valy from the Indian Rubber Dealers’ Federation mentioned that if rain doesn’t interfere with tapping, production could be higher than last year. But there’s also pressure from international prices.

Vinu: Oh? How are global prices affecting our domestic market?

Manu: Prices of block rubber in the international market have dropped—from ₹156 to ₹142 per kg in just two weeks. This can pull down domestic prices too, especially since more import options are now open to the industry.

Vinu: Hmm. And what about market sentiment here?

Manu: As per Valy, the domestic market is relatively stable this season. RSS IV grade rubber was trading at ₹189 per kg. Also, rain-guarding is ongoing in plantations to protect trees and ensure a consistent tapping process.

Vinu: That sounds like good planning. Any input from industry players?

Manu: Yes, Santosh Kumar, CEO of Harrisons Malayalam Ltd., noted that early rains have lifted hopes for a better harvest. Still, there’s concern about climate uncertainties which have disrupted past cycles.

Vinu: Were there any other risks highlighted?

Manu: Yes, another key issue is the global trend. The article notes a slight negative trend in international markets. Most rubber exported is in the form of TSR, and if those prices drop, it can impact local markets too.

Vinu: Thanks, Manu. Before we wrap up, can you explain a few terms used in the article?

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