This is the topic of worry for Indian Rubber industries that the natural rubber prices can surpass Rs. 200/Kg after June, 2024. Let us understand this in details that why these prices are increasing so fast?
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Increasing Demand in the Tire Industries
Due to the increased car manufacturing and tire exchange, we have seen the demand of rubber in the tire industry.
With the increasing economic growth and also the number of cars that are running over road, the demand of rubber is continuously increasing.
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Increased Demand for Green Products
To decrease the pollution levels, the awareness regarding the environment is continuously increasing. Natural rubber is a great alternative for synthetic rubber because it is environment friendly.
As a result, the increasing demand for green product is responsible for increased rubber prices.
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Global Supply Chain Disruption
Due to Covid-19, the disruption is caused in the world supply. Lockdown in rubber manufacturing countries and also the other ban, the supply had been disrupted.
Due to increased demand and also decreased availability, the rubber prices has been hiked.
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Increasing Demand in China
China is the biggest manufacturer of tire and also the biggest customer of natural rubber.
Due to industrial advancement, the demand of rubber is continuously increasing.
Also, the increasing demand of China’s produced products, the rubber prices are also affected in the global market.
Impact of These Rising Prices
Due to the increased demand of natural rubber, there are chances of increase in prices of tires. It also impacts the vehicle manufacturer and also the customers.
Also, the prices of other commodities can also increase.
What are the Solutions?
By increasing the production of rubber and also the local manufacturing, India can reduce its dependence.
Alternative resources can also be created.
Conclusion
Increasing natural rubber prices is a big challenge for Indian economy. Finding a balance between demand and supply and also finding alternatives can be a solution for this issue.
