As an outcome of the disruption in south-east Asia, there has been a price rise by as much as 65% in the cost of natural rubber. The poor weather and flooding has hence resulted in the augment of prices.

While there had already been a price rise by threefold in the last two years, the heavy rainfall has further forced the prices to rise. The collection and production of natural rubber has been affected and this has brought the level of stocks down.

A warning is said to have been issued by major manufacturers saying that the prices of their goods are likely to see arise to offset increased production costs.

Bridge-Continental, Michelin and Goodyear and many other tyre Companies have already started forcing the price rise on their customers which the analysts believe will continue even further.

A squeeze in margin is being witnessed by rubber glove manufacturers and the condom retailers too have posted a price rise by as much as 20%, as a result of rise in prices of the raw material.

Job Jacob, senior economist at the Association of Natural Rubber Producing Countries asserts “The concerns over natural rubber supply are likely to persist until the end of 2011”.