Market Analysis

Price variations

World rubber prices may continue to show some strength in the near future largely due to the high oil price and continuing global economic growth. If global economic growth, especially in developed countries such as the EU, Japan, and the United States and large developing countries such as China and India continues at the current pace, further price strengthening could be expected. However, the magnitude of the growth in rubber consumption depends considerably on the growth in China.

Source: Economic Review

Average Market Price of Natural Rubber in Domestic (Kottayam) and International (Bangok) Markets

Year	Kottayam (RSS-4)	Bangok (RSS-3)	Index of World Price based on Indian price
1992/93	2550	2608	102.27
1993/94	2569	2510	97.70
1994/95	3638	4171	114.65
1995/96	5204	5016	96.39
1996/97	4901	4509	92.00
1997/98	3580	3221	89.97
1998/99	2994	2885	96.36
1999/00	3099	2704	87.25
2000/01	3036	2958	97.43
2001/02	3228	2793	86.52
2002/03	3919	4111	104.90
2003/04	5040	5278	104.72
2004/05	5571	5751	103.23
2005/06	6699	7432	110.94

Source:Economic review

The following pie diagram shows the average market price of natural rubber in domestic and international markets.

Average market price of natural rubber in domestic and international market

Relative movement of international and Domestic price of natural rubber

Month & Year	India (Rs.per 100 kg. of RSS 4) (Kottayam)	World (Rs.per 100 kg. of RSS 3) (Bangok)	Variation in World Price based on Indian Price
2005 April	5840	5768	98.77
May	6214	5824	93.72
June	6173	6384	103.42
July	6562	6881	104.86
August	6084	7053	115.93
September	6034	7447	123.42
October	6555	7644	116.61
November	6566	7366	112.18
December	6886	7666	111.33
2006 January	7360	8287	112.60
February	8045	9211	114.49
March	8069	9246	114.59
April	8634	9695	112.29
May	9841	10998	111.76
June	10692	12484	116.76
July	9821	11710	119.23
August	9182	10303	112.21
September	8169	8480	103.81
October	8709	8463	97.18
November	8260	7426	89.90
December	8609	7811	90.73

Source:Economic review

The below table shows the relative movement of international and domestic price of natural rubber.

Market (Rubber)
Commodity Prices
Market Analysis
Market Intelligence
Marketing
Agricultural Technology Information
Animal Husbandry Information
Fisheries Technology Information