Acquire foreign land to promote rubber cultivation: IRDF

KOCHI (Commodity Online): Indian Rubber Dealer’s Federation (IRDF) has suggested the India government to acquire land in other countries and encourage rubber cultivation.
China is already having an early bird advantage in this regard. The country, one of the biggest consumers of natural rubber is acquiring plantations in other regions(South East Asia and Africa) with suitable climate to enhance rubber output, Financial Express reported.
Sri Lanka can be a possible destination for India in this regard, IRDF President George Valy, said.
There is limited scope for expansion in rubber cultivation in Kerala, Tamil Nadu and North East. Demand supply-gap in the 2010-11 fiscal stood at 87,255 tons, as compared to 99,165 tons in the previous year.
In January, there were reports that Harrisons Malayalam(HM), India’s largest rubber plantation and top producer of natural rubber was scouting Ethiopia, Cameroon, Ghana and Indonesia for acquiring plantations.
Besides, HM have plans for India’s North Eastern state of Tripura, where the conditions have been proven to be ideal for rubber plantations.

The company already owns 7000 ha in plantations but is producing only half of its total annual capacity of 10,000 tons, reported The Financial Express in November.
HM may opt for a JV or leasing of land to the tune of 10,000 ha, as demand from tyre, latex, sports good and glove manufacturers surge, said the report.
A high level working group of the Government of India last year had given approval for the acquisition of farm lands in foreign countries.
The government is said to have offered full support for Indian companies in this regard.
Arable land in India is shrinking like never before. In 2005, the arable land accounted for 48.83 % of the country. But now, it has shrunk drastically with increasing urbanization.
The idea of farm land outsourcing is not new, given the fact that many major cash-rich economies have started this long before. Over 20 million hectares of land has already been sold, globally as on November 2010.
China, Saudi Arabia, and South Korea top the charts on this account. Japan, a big player, has acquired lands in foreign countries thrice the size of its domestic farm fields!
The only deterrent in this endeavour is the local resistance that may come along with acquisition of farm lands. This trend is very much evident in countries like Mozambique and Madagascar.

(Source: http://www.commodityonline.com/news/Acquire-foreign-land-to-promote-rubber-cultivation-IRDF-38419-3-1.html)