While severe drought affected yield, most of the rubber growers stopped tapping due to the fall in prices which began late last year when South East Asian currencies weakened sharply against the dollar. The steep fall in South East Asian currencies, forced rubber prices down because rubber producing Asian countries, like Malaysia exported rubber at rates much below their competitors. Indian rubber which once fetched about Rs 75 per kg late last year, fell to an all-time low of Rs 26 per kg in February. Presently, the price of RSS 4 variety is ruling at Rs 27 per kg.

To make matters worse, tyre manufacturers, a major consumers have announced a series of lock-outs across Kerala. Dealers here fear that price of the commodity would hit rock bottom levels soon. In fact, the rubber consumption has already touched an all-time low. Last couple of months saw a number of small and medium tyrecompanies as well as some small crumb rubber units halting operations. Even the Rubber Board officials believe that the natural rubber price may crash further unless the authorities fix a reasonable benchmark price and begin massive procurement operation.

According to a survey conducted by the Rubber Board the production of natural rubber has declined by over 6,000 tonnes between February and March. Following this the Board has pared the estimated rubber production in 1997-1998 down at 5.84 lakh tonnes from the earlier 5.90 lakh tonnes.

According to officials from the Board, an expert team has undertaken an extensive survey among the growers to examine the impact of drought and the price effect on the production level of the commodity. A major finding of the survey team was the decision of small growers to give tapping holiday. Small holdings accounts for more than 70 per cent of the total production of natural rubber in the country. Large plantations, however, have not cut down production, despite theunfavourable conditions. This is mainly because they cannot lay off their work force. According to the survey's findings, compared with the previous year the yield per hectare has registered a 30-40 per cent decline between February and March. The average yield of natural rubber is pegged at 1,362 kg per hectare.

The summer has also taken its toll with the seasonal summer rains eluding the state. In some districts temperature touched an all-time peak of 40 degree Celsius recently.

Board officials said even during the peak season (December-January) the average productivity has shown a decline. Meanwhile, the expert team from the cost accounting branch of the Finance Ministry has completed their survey of rubber producing units and returned to Delhi.