Growing rubber demand to make imports a must

Kochi: A less than desirable growth in planting and re-planting of natural rubber is leading to a situation where India will be forced to import to meet its increasing appetite for the commodity. For the fourth consecutive year, domestic consumption of natural rubber has outstripped production and the gap is seen widening, say officials of Automotive Tyre Manufacturers Association (Atma).

It is projected that natural rubber consumption is expected to go up approximately by 12-15% in the current fiscal, while production increase is likely to be only 5-6%, leading to a deficit of 1,76,000 tonne, which is more than double the projections of the Rubber Board.

A study carried out by the International Rubber Study Group (IRSG) says that India is the only nation that is likely to consume rubber at a faster rate.

“Consumption in the US is expected to dip in the short and long run, while the same in Japan and Germany will remain flat. The largest consumer, China, will slow down in coming days but will still retain the pole position,” sources at IRSG said.

The per capita consumption in India still lags the global standards, so the potential for growth is more.

According to Atma sources, though the area under production is showing a rising trend, the incremental increase in area is on the decline. During the previous financial year, only 3,000 hectare was added to tapping area as against 19,982 hectare during 2003-04.

India’s share of total planted area among the members of the Association of Natural Rubber Producing Countries (ANRPC) has remained almost flat –– from 7.5% during 2005 to 7.8% during 2009.

The rubber sector is concerned about uneconomic land holdings, dependence on a single clone and limitations of non-traditional areas. The traditional area of rubber farming in Kerala accounts for 92 % of natural rubber production, and experts feel that it is saturated. Kerala does not have fresh land for rubber cultivation.

The Rubber Board is relying on the north-eastern states for increase in output. Atma claims that the area under plantation in these states is significantly lower than the potential. The potential area there is approximately 4, 50,000 ha while the area covered is just 16% or 71,840 ha.

However, some feel that although land is available in the region, the cold climatic condition of the Northeast is not conducive to rubber. ...

(financialexpress.com)