The rubber market is at a standstill because tyre companies have stopped purchasing raw materials. The majority of rubber merchants have closed their doors as a result of the tyre companies' apparent coordinated move.
Because of the situation, merchants are refusing to accept rubber sheets, and the situation for cultivators is bleak. Rubber is priced at Rs 145 in Kottayam. However, the farmers receive only about Rs 142.
Previously, the Rubber Board stated that tyre companies' hostile attitude toward domestic production will be counterproductive in the coming years.
Farmers may become disinterested if prices fall. Due to a lack of domestic production, the country is heavily reliant on imports. Rubber-based industries will be in jeopardy if international market prices affect the sourcing of rubber.
Tyre companies exported 56,000 tonnes of sheets in August. Companies are looking for low interest rates and are booking stock whenever prices fall.
According to reports, rubber companies believe that if procurement is halted, domestic prices will fall. According to reports, the Ministry of Commerce and Industry has requested a response from the tyre industry regarding the apparent procurement ban.
