Kochi: Sheet rubber prices have fallen 5 per cent in November so far following an increase in production amid slowing demand.

Usually, the peak tapping season ends by the middle of January.

On Wednesday, the RSS-4 variety, used in tyre manufacturing, was priced at Rs 119 per kg.

“In October, our production should be close to that in the same period last year,” said Sabu P Idicula, rubber production commissioner at Rubber Board. In October 2017, India had produced 62,000 tonnes of sheet rubber. Tapping has been on in Kerala, the top-producing state, since September following good rains. Trees have started growing leaves after suffering a heavy fall in the monsoon months. The worst loss happened in August, when heavy rains and flood ravaged the state.

“There is a chance that the tapping season may get prolonged this year,” said Idicula.

Usually, the peak tapping season ends by the middle of January. Against an annual target of 7 lakh tonnes, the board expects that production will reach around 6 lakh tonnes. Last year, the output was 6.94 lakh tonnes.

Domestic prices are tracking the trend in the international market, where excessive supply and sluggish demand from China have driven the prices down. Tyre companies have been resorting to massive imports, capitalising on lower international prices. Block rubber, which is mostly bought by the tyre industry from overseas, is available at Rs 88 per kg now.

“There has not been sufficient demand to absorb entire arrivals in the market. Tyre makers have been relying more on imports,” said rubber dealer N Radhakrishnan. However, he said, tyre makers would buy more from the domestic market now since the price of imported rubber is close to the domestic prices.