Even as international prices soared, rubber production suffered a blow in the summer months in Kerala due to rising temperatures.

According to the Rubber Board, India's rubber production has fallen to a third in last three months.

Taking a cue from the rising Bangkok prices, spot market prices of RSS-4 are also heading northwards.

From 96,500 tonne in January 2007, production had halved to 47,500 tonne in February, say Rubber Board's latest data.

In March, the production is expected to end up in 37,500 tonne. The forecast says in April, the output is likely to fall to 30,000 tonne.

The fall in latex production is due to the unusual summer temperatures in Kerala.

The summer time mercury in hilly slopes in Kerala has been riding 2-3 degree Celsius above normal.

In just one day, liquid latex prices in Kochi bourses flared up by 60%. RSS-4 prices have also been moving from Rs 95 to 100 a kg level.

The shortage in India coincides with the rubber demand boom wordwide, in tune with China's construction activities.

Moreover, according to an international rubber journal, supply from Thailand has been disrupted this year by racial problems in the south of the country.

In another development, all stakeholders in rubber value chain -- from industrial buyers to farmers -- are agitated over the element of unpredictability that rubber futures have introduced to the spot market.