look news india
Mumbai: Rubber prices in India are likely to reach the highest level in a decade due to acute shortage of natural rubber in the global market. Any increase in rubber prices has a serious impact on the tire industry of the country.
The price of natural rubber is expected to increase to Rs 200 per kg in April-May of the current year. Due to this increase, tire companies may see an increase in the production cost in the first quarter of the financial year 2024-25.
70 percent of the natural rubber produced in the country is used by the tire industry. An analyst said, in case of price increase, tire companies may be forced to increase prices.
At the end of last week, the price of RSS-4 natural rubber reached Rs 180 per kg. Apart from natural rubber, the rates of synthetic rubber are also increasing.
He also said that if prices continue to rise, companies will have no option but to increase prices. Apart from lower production, global rubber prices have seen a recent rise due to the Rata Sagar crisis.
The Red Sea crisis has disrupted India's rubber supplies to the western region.