A Study on the Factors Affecting Natural Rubber Prices in India

Abstract

Multiple economic factors influence the price of natural rubber in India. This study uses a Vector Autoregressive model with monthly data (2014–2024) to examine key determinants. The findings show that exchange rates, domestic consumption, imports, exports, stocks, and Kuala Lumpur prices significantly affect rubber prices. Exchange rates play a crucial role due to dollar-based trade, while domestic demand positively drives prices. Imports, exports, and stocks exhibit a negative relationship, reflecting supply–demand dynamics. Kuala Lumpur prices also have a positive influence, indicating global market integration. However, domestic production, crude oil prices, and Bangkok prices show no significant impact.