New Delhi, Apr 24 (PTI) The domestic rubber industry has suggested the government to expand the country''s rubber output by following the Chinese model of acquiring land in other countries for plantation.
"We have recommended the government to follow China for expansion in rubber production. China has recently been acquiring land in other countries to undertake rubber plantation to meet its growing demand," Indian Rubber Dealers Federation (IRDF) President George Valy told PTI.
India should study the Chinese model of rubber expansion (in Southeast Asia and Africa) as the former is also facing the problem of limited land resources for rubber plantation, he said.
According to IRDF, "Sri Lanka can be a possible destination for acquiring plantations due to its proximity, favourable climate and un-tapped potential."
Echoing similar views, South-based rubber producers said that there is limited scope to expand rubber plantation in states like Kerala, Tamil Nadu and North East. "So, foreign location is a viable option," they suggested.
The proposal emerged during the recent consultative workshop on the rubber sector organised by the Commerce Ministry for taking views of the domestic rubber industry for designing a rubber policy for the 12th Five Year Plan.
Besides IRDF, All India Rubber Industry Association and Automotive Tyre Manufacturers'' Association (ATMA) were among others present in the workshop.
The industry bodies said the domestic rubber availability is a matter of concern as the demand-supply gap is widening.
"In the medium to long-term, prospects of availability of natural rubber is a concern and it is about time that the government should look for options abroad," an ATMA official said, adding that the gap is expected to rise this fiscal in view of rising demand from the automobile sector.
According to official data, the demand supply-gap in the 2010-11 fiscal was 87,255 tonnes, as compared to 99,165 tonnes in the previous year.
By 2020, the demand and supply gap is expected to widen by 3-5 lakh tonnes considering the current pace of development in automobile and other rubber users industry.
The domestic production of natural rubber is 8,61,950 tonnes FY''11, as against the demand of 9,49,205 tonnes in the same period.
(Source: http://in.news.yahoo.com/india-china-enhance-rubber-output-industry-060000233.html)
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