Witnessing supply side constraints on rubber, says ATMA

Rubber prices continue to run up. The natural rubber prices have hit the highest levels in four years as demand picked up from the automobile sector as well as from the rubber glove industry. Rajiv Budhraja, Director General of Agricultural Technology Management Agency (ATMA) discussed his outlook.

We are witnessing supply side constraints, he said in an interview with CNBC-TV18.

Both tyre and non-tyre sector has rebounded reasonably well on the demand side, he said. “The September rubber consumption has touched the highest for this financial year, we are likely to be over 100,000 tonnes in September. Last year September the rubber consumption was 85,000 tonnes. That is the demand side scenario,” he mentioned.