Natural rubber prices in the domestic market have touched a historic high of ₹290 per kg for RSS-IV grade, driven by strong demand from consuming industries and tight supplies, pushing Indian prices above international levels.

Traders attributed the surge to robust demand from tyre manufacturers, noting that domestic natural rubber prices were ruling ₹20 per kg higher than international prices. Prices in Bangkok stood at around ₹270 per kg. Block rubber prices in India reached ₹273 per kg, compared with the international price of ₹245.

George Valy, president of the Indian Rubber Dealers Federation, told businessline that natural rubber availability had not improved to the expected extent despite regular tapping. Imports of natural rubber and compound rubber have also remained high, averaging around 75,000 tonnes a month, he said.

The prevailing prices of latex and cup lump, at ₹300 and ₹200 per kg, respectively, have reportedly encouraged growers to shift from sheet rubber production to these alternatives to capitalise on better price realisations. This shift has also contributed to the shortage of sheet rubber in the market, he added.

Meanwhile, growers are hopeful of improved yields in the coming months, as the northeast monsoon brings rain to major rubber-growing regions. The rainfall is expected to support production and improve market availability, Valy said.

According to Harish MV, Director, Harnez Fin Analysis, the current surge in prices is largely attributed to the West Asian conflict. In energy markets, heightened Brent crude prices, driven by geopolitical tensions, have increased production costs for synthetic rubber, prompting manufacturers to shift towards natural rubber.

In India, unusually hot weather cut latex output in southern growing areas, while auto sector demand exceeded local supply and supported imports. Chinese buyers became more cautious after the August rise, which limited further gains. Natural rubber prices are likely to stay firm at the 300 level in the near future as weather risks continue in producing regions, though rising seasonal supply and weak demand outside Asia may limit further gains, he said.

Published on October 22, 2026