Natural rubber import to increase, exports to decline: Survey

The Economic Survey today said the export of natural rubber (NR) could be lower and its imports could rise in 2010-11 on back of increase in consumption.

"India has emerged as the second largest consumer of NR, overtaking the United States with a share of 9.6% in world consumption in 2009," the survey tabled in Parliament by Finance Minister Pranab Mukherjee said.

The report said consumption of NR in 2010-11 is projected to increase by 1.9% to 9,48,000 tonne.

The consumption of NR in the year-ago period was 930,565 tonne.

"Despite not having the best geographically favourable regions for growing NR, India continued to record the highest productivity among major NR producing countries," the survey said commending India's potential as a NR producer.

India is the fourth largest producer of NR with a share of 8.5% in worlds production in 2009, it added.

"The production of NR in 2010-11 is projected at 8,51,000 tonne, which is an increase of 2.4% over 2009-10," the report said. India produced 8,31,400 tonne of NR in the previous financial year.

The exports of NR in the period April 10-January 11 declined by almost 14% to 11,678 tonne as against 13,499 tonne in the year-ago period.

The imports registered an increase in the April 10-January 11 period by almost 8% to 1,64,330 tonne as against 1,52,510 tonne in the corresponding period of previous year.