There appears to be no respite in the near term from surging rubber prices in India due to shortage of supplies and delayed imports. Abnormal fall in production in Thailand is adding to the problem. The robust demand for tyres in an election year will put pressure on the sector.
Big consumers of rubber, like the tyre industry, are relying on cheaper imports from the Ivory Coast, impacting margins of domestic growers. Traders say that even domestically, industry is looking to the North-East for cheaper varieties rather than to Kerala, the highest producer.
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In Kerala the pineapple sector is reported to be worst-hit with more than 50% workers headed back home The surge in the second Covid-19 wave is likely to aggravate labour scarcity in the coffee- and rubber-producing regions of Karnataka and Kerala as rising infections and curbs imposed by various States is likely to impact the return of migrant labour from States such as Assam and West Bengal.
Workers from Assam, Chhattisgarh and Bengal, who account for close to half of the workers in Karnataka coffee estates, have gone home to cast their votes in the Assembly elections.Around five lakh workers are estimated to be employed in Karnataka’s coffee sector. Most of the workers left for their home States in early March and the shortage of labourers is being felt during the coffee and pepper harvest this year, growers said.