Dependence on rubber imports on the rise

The latest data with the Rubber Board underlines the growing gap between demand and domestic supply of the product.

There has been a 122 per cent rise in import of natural rubber between April 2009 and this February, compared to the corresponding period last year — 157,980 tonnes against 71,025 tonnes. The figures also raise a question on the Board’s own estimates. It had originally projected a production of 867,000 tonnes and consumption of 881,000 tonnes for 2009-10. Their latest data show the year’s domestic output would be only 827,000 tonnes, against a total consumption of 931,000 tonnes.

This is a drop of 4.3 per cent in production over 2008-09 and a 6.8 per cent rise in consumption. For 2010-11, the Board has projected a total production of 901,680 tonnes and a consumoption of 986,860 tonnes. However, rubber-based industries say the gap will be much wider, due to vibrant economic activity. They estimate the rise in consumption to be 125,000 tonnes, which means a gap of at least 150,000 tonnes.

In sum, near self-sufficiency in natural rubber has changed to increasing dependency on imports. Part of the surge in imports thisyear was due to lower global prices during the first half. Rise in area under cultivation and replanting of ageing trees clearly requires more attention.