According to the daily Rubber Board statistics, the price of ribbed smoked sheet rubber grade 4 (RSS-4) stood at Rs.271 per kg as on Saturday, marking the highest price ever recorded in the Indian market. While experts attribute this surge to a combination of factors, the rubber plantation sector in Kerala is witnessing a resurgence after a decade of stagnation. In rubber growing areas across the state, including in Malabar, over 90% of growers have either started tapping or are preparing to do so. However, a large section of growers said they are currently not benefiting from the price rise as they have either not rain-guarded their trees for tapping or have faced disruptions in tapping due to the heavy rain.
Reasons for surge in prices Despite a huge demand-supply divide, domestic prices of natural rubber are heavily influenced by international market trends. The prices recorded a sharp increase across various international markets over the past few weeks, with the Bangkok market crossing the 300-mark for the first time, closing at Rs. 304.62 per kg of RSS-3 on June 6, registering a growth of 58.78 % from January 2026. The current surge in rubber prices is largely attributed to West Asia conflict.
In energy markets, heightened Brent crude prices, driven by the geopolitical tensions, have increased production costs for synthetic rubber, prompting manufacturers to shift towards natural rubber. Another factor driving the prices is the growing demand for higher quality materials to support the expansion of the electric vehicle (EV) market and exports of premium tyres.
Rubber Cultivation in Kerala in 2024-25 Kerala contributes 71.44% of the total rubber production in India As per the average price of rubber in 2024-25, a total L12,064.81 crore reached farmers in Kerala Total Cultivation 5,47,740 hectares Tapped Area 3,94,138 hectares Production 6,25,120 tonnes Relief for state govt Kerala government launched Rubber Production Incentive Scheme (RPIS) in 2015 to prop up the plantation sector with a subsidy when it recorded a huge fall in prices.
As of January this year, rubber prices reached the Rs.200 mark, eliminating the need for government expenditure on this subsidy scheme for the current year.