Published on August 14, 2018

Rubber manufacturing industry in India is becoming over-reliant on imports of low-cost natural rubber.The Indian rubber industry’s over-dependence on imported, cheap natural rubber may be highly unsustainable, posing serious challenges for its growth and competitiveness.

Natural rubber production has hit a six-year low of 1.26 lakh tonnes in the first quarter of 2018-19 as consumption reached a peak of 3.02 lakh tonnes.

As per recent information, domestic natural rubber production meets only 42 per cent of the domestic demand in Q1 of the current fiscal. Inadequate availability of domestic NR is leading the tyre industry to a precarious position. The dependence on expensive imports will need to go up significantly if tyre manufacturing operations are to be sustained in the country.

According to the latest figures by Rubber Board of India, natural rubber production contracted by 12 per cent while consumption went up by 14 per cent. The deficit stood at 1.76 lakh tonnes in the first three months of the ongoing fiscal against 1.21 lakh tonnes a year ago.

According to the latest figures released by Rubber Board of India, natural rubber (NR) production contracted by 12 per cent while consumption went up by 14 per cent. The deficit stood at 1.76 lakh tonnes in the first three months of the ongoing fiscal against 1.21 lakh tonnes a year ago.

Market analyst said that , Despite declining domestic production, rubber consumption and the industry continued to grow, though at lower rates, with substantial imports. RRII has successfully demonstrated the initiative on a small landholding in Kerala representing the central traditional rubber growing tract in India.