Rubber prices in India have soared past Rs. 200 per kg due to a severe supply crunch, marking one of the highest price points in recent years.

The surge is attributed to reduced domestic production, unfavorable weather conditions, and rising global demand. Kerala, India's largest rubber producing state, has witnessed a significant drop in latex output due to unseasonal rains and declining cultivation. Experts point out that the supply shortage has been exacerbated by increased consumption from the automotive and industrial sectors, which rely heavily on natural rubber.

The shortage has also impacted rubber dependent industries, particularly tyre manufacturers, which are now facing higher input costs. While farmers benefit from the price hike, the industry is calling for government intervention to stabilize the market and ensure adequate supply. Analysts predict that rubber prices may continue to rise unless production improves or imports increase. The industry is closely monitoring government policies, including potential measures to ease import restrictions and support domestic growers.