With reference to the natural rubber market in India, consider the following statements: 1. Natural rubber prices reached a historic price of ₹300 per kg. 2. The Union Commerce Ministry plans a plantation boost programme in Keralam. 3. The Rubber Board reported that the price surge was caused by an oversupply in the domestic market. Which of the statements given above is/are correct?

Natural rubber hits historic ₹300 a kg as Union Commerce Ministry plans Keralam boost

GS3Economy · S&T · Environment · Security· Industry, investment & MSMEs· Prelims· 2 November 2026

Commodity price volatility and state-led plantation programmes: a GS3 Economy and Agriculture case study.

Why in news

The price of natural rubber hit a record ₹300 per kg due to supply shortages, prompting the Union Commerce Ministry to plan a plantation boost programme in Keralam.

Background

Natural rubber prices reached a historic ₹300 per kg in the domestic market on October 2. The Rubber Board reported that the surge was caused by tight domestic supplies and firm international prices.

Facts for Prelims

FactNatural rubber reached a historic price of ₹300 per kg on October 2.
BodyRubber Board: The body responsible for reporting daily price fluctuations and overseeing rubber production.
PlaceKeralam: The state targeted by the Union Commerce Ministry for a plantation boost programme.

Prelims practice question

With reference to the natural rubber market in India, consider the following statements:

Natural rubber prices reached a historic price of ₹300 per kg.
The Union Commerce Ministry plans a plantation boost programme in Keralam.
The Rubber Board reported that the price surge was caused by an oversupply in the domestic market.

Which of the statements given above is/are correct?

(a)2 only
(b)3 only
(c)1 and 2 only
(d)2 and 3 only

Show answer

Answer: (c) 1 and 2 only — Statements 1 and 2 are correct. Statement 3 is incorrect: The surge was caused by tight domestic supplies.

For Mains

Q. Discuss the factors contributing to the volatility of natural rubber prices in India and evaluate the effectiveness of state-led plantation programmes in ensuring supply chain stability.

Dimensions to cover in your answer

Supply-side constraints: Impact of tight domestic availability and international price firming on domestic market stability
Policy intervention: Effectiveness of plantation programmes in Keralam to mitigate price shocks and boost production

Keywords: Supply chain volatility · Commodity price surge · Plantation programme · Domestic supply · Market equilibrium

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