IGI Logo

India's Rubber Board projects a robust increase in natural rubber production to 8,75,000 tonnes for FY-25, bolstered by expanded plantations and improved weather conditions. Domestic consumption rose by 4.9% in 2023-24, with sheet rubber dominating at 41.6%, underscoring its pivotal role in industrial applications. Despite production challenges due to early rains, strategic measures aim to enhance supply reliability and reduce dependence on imports.

Highlights

Projected Production Increase: The Rubber Board anticipates natural rubber production to reach 8,75,000 tonnes in FY-25, bolstered by expanded rain guarding and improved weather conditions in Kerala and the North-East.

Expansion in Plantation Area: The total area under rubber plantation is set to rise to 8,89,000 hectares in 2023-24, reflecting an increase from 8,50,000 hectares the previous year. This expansion includes an additional 8,500 hectares of tappable area.

Consumption Breakdown: During 2023-24, the total consumption of natural rubber in India amounted to 14,16,000 tonnes. Sheet rubber accounted for 41.6% (5,89,345 tonnes) of this consumption, while latex contributed 7.7% (1,08,405 tonnes).

Demand for RSS Grades: RSS grades of natural rubber continue to dominate domestic consumption, driven by their quality and suitability for various industries, particularly in tyre manufacturing.

Encouragement for Sheet Processing: The Rubber Board encourages growers to focus on processing sheet rubber rather than selling field latex directly. This shift aims to capitalize on higher profit margins available in sheet rubber production.

Production Trends: Despite a slight decrease from the previous year due to early rains in May, natural rubber production from April to May 2024 amounted to 81,000 tonnes, with expectations for improved supply conditions going forward.

Domestic Consumption Increase: Domestic consumption of natural rubber saw a 4.9% increase year-on-year, reaching 14,16,000 tonnes in 2023-24 compared to 13,50,000 tonnes in 2022-23.

Import Trends: Imports of natural rubber have fluctuated, with 4,92,682 tonnes imported in 2023-24, indicating a strategic focus on increasing domestic production to achieve self-reliance.

Conclusion

The forecasted surge in natural rubber production signals a promising trajectory for India's rubber industry, supported by proactive measures in plantation expansion and disease control. The emphasis on increasing domestic consumption, particularly through high-demand RSS grades, highlights opportunities for growers to maximize profitability through sheet processing. As efforts continue to bolster self-reliance in rubber production, stakeholders are poised to capitalize on market opportunities while ensuring sustainability and resilience in the face of global supply dynamics.

Above views are of the author and not of the website kindly read disclaimer