The rubber market has witnessed a sharp decline, with prices falling by Rs. 25 over just 27 days. In Kottayam, the price of RSS-4 grade rubber, which stood at Rs. 215 per kilogram on 22 July, dropped to Rs. 190 by 18 August. Industry sources attribute the price fall primarily to tyre manufacturers withholding purchases.

The downward trend is mirrored in international markets as well. In Bangkok, the current price for RSS-4 is Rs. 185.96, with similar trends being reported across other major markets. Even the Rubber Board's official price list typically reflecting relatively stronger domestic rates has signaled concern, quoting RSS-4 at Rs. 198.

Meanwhile, continuous heavy rains in Kerala have severely disrupted tapping and harvesting activities. Many growers, who had tried to resume tapping during brief dry spells, have been forced to stop again due to persistent night time rainfall. Farmers now hope that tapping will resume in earnest only if prices improve during the upcoming Onam season.

However, tyre companies remain cautious, keeping a close eye on global economic uncertainties and potential tariff changes. In Thailand, farmers have alleged that Chinese agencies intentionally withdrew from the market to suppress prices. Official sources, however, state that China's move is a precautionary measure in response to evolving business conditions in its production sector.

Despite falling international prices, tyre manufacturers in India have not capitalized on cheaper imports. Farmers remain sceptical, accusing companies of stockpiling rubber to release strategically when domestic prices rise effectively giving them greater control over the Indian market.