Tight supplies to keep rubber prices steady

KOCHI: The global prices of natural rubber will remain steady in the medium term on account of tight supplies and growing demand. 

Abdul Aziz, secretary general, International Rubber Research and Development Board (IRRDB), said the natural rubber situation is not likely to see any significant change in the medium term. 

However, countries like Vietnam, China, Cambodia and Laos are increasing the area under rubber. By the second half of this decade, Vietnam could emerge as a major player surpassing both India and Malaysia, he said. 

Mr Aziz said production in the Asian countries has been affected by labour shortage and climatic changes. An increase in production is also limited by large-scale replanting in the leading producers. Mr Aziz was speaking to ET on the sidelines of the international workshop on ‘Climate Change and Natural Rubber Cultivation Research and Development Priorities’ jointly organised by the Rubber Research Institute of India (RRI) and IRRDB. 

An expert on natural rubber, Mr Aziz was of the view that price stabilisation was not warranted as the current upsurge is shaped by the demand and supply factors. 

Earlier in his keynote address Prof J Sreenivasan of Indian Institute of Science, Bangalore said studies showed that over the years there has been a decline in the rainfall in Kerala, the main rubber producing region. 

Dr James Jacob, director, RRI, in his paper, ‘Impact of Climate Change on Natural Rubber Productivity in Different Agro-climatic Regions in India’, pointed out that the productivity of rubber plantations in the state was on the decline due to rising temperature. 

According to him, a one degree increase in temperature will result in a 15% fall in productivity. It is in this context that the RRI is developing new heat resistant clones of natural rubber. The productivity of NR in the country declined to 1,784 kg per hectare per year in 2009-10 from 1,867 kg during 2008-09.

(economictimes.indiatimes.com)