The price of rubber has fallen with the same speed at which it shot up last month in the international market. In 30 days, it has risen to ₹200 a kg and returned to ₹170.
This was triggered by anxiety over the availability of rubber in major rubber producing countries. Due to repeated floods in the southern provinces of Thailand at the end of last year and at beginning of this year, tapping could not be done for long periods . Along with this, the expectation that rubber demand from China would pick up in the new year has influenced futures trading in rubber.
There was also a widespread feeling that there could be a shortage in the global availability of rubber. In the futures market the impact was sudden. When the floods in Thailand gradually receded the anxiety about the non availability of rubber disappeared and the prices started falling.