Date:30/10/2008 URL: http://www.thehindu.com/2008/10/30/stories/2008103060540600.htm

Karnataka

Fall in rubber price disappoints growers

Special Correspondent

Price has come down from about Rs. 140 to Rs. 88 a kg

Hopes dashed: A file photo of a rubber plantation near Sullia in Dakshina Kannada district.

MANGALORE: Prices of rubber have come down by half in the past month. This has dampened the spirits of growers.The global economic crisis and falling prices of crude oil, which has brought down prices of synthetic rubber (a petroleum by-product) is said to be the cause for the fall in prices of natural rubber.

The growers had expected a good season this time as prices of rubber had gone up. About a month ago, prices were hovering around Rs. 140 a kg for rubber in the form of sheets. But it is now being sold at Rs. 85 to Rs. 88 a kg.

The varieties commonly available in this part of the State are RSS4 and RSS5. The price of RSS4 has come down to Rs. 88 from Rs. 142 and the price of RSS5 has come down to Rs. 85 from Rs. 140 in the Kottayam market. Assistant Development Officer for the Mangalore regional unit of the Rubber Board S. Balakrishna said the fall appeared drastic because the prices had risen very high. He said the prevailing rates were good, but farmers, who had expected high returns, were disappointed. He said the cost of production of a kg of rubber is about Rs. 35 to Rs. 40.

Raju Shetty, secretary of the Belthangady Taluk Rubber Growers Marketing and Processing Society, which has 14 branches in four districts, said that the “boom” in the rubber market had ended. The fall in prices has hit the society adversely. Mr. Shetty said that the society had a uniform pricing policy and stuck to the rates announced in the morning across the branches.

The growers had taken advantage of this and sold rubber when the rates fell intraday. The society as a matter of policy could not refuse to buy the rubber. As a result it had to purchase about 200 to 300 tonnes of rubber at prices much higher than the prevailing market rate. This had led to a loss of about Rs. 15 lakh.

Mr. Shetty, however, hoped that the society would make up for the loss in coming days. He said that prices had fallen by Rs. 50 from September 27 to October 8.