Natural rubber output falls despite pullback

Natural rubber [NR] production fell 3.3 per cent in financial year 2008 (FY08) to 825,000 tonnes as against 853,000 tonnes in FY07, according to the final estimates of the Rubber Board, which were announced on Monday.

Total consumption, on the other hand, increased to 860,000 tonnes, up 4.8 per cent, during the year. Offtake in the tyre sector, which consumes around 55 per cent of the total national production, grew 6.4 per cent. The growth in the non-tyre sector was 2.9 per cent.

The short fall in production during the first half of FY08 was effectively plugged in the latter half.

During April"�September 2007-08, production dropped by 16 per cent to 320,000 tonnes as against 382,210 tonnes in the corresponding period of the previous year.

During the period, the board had projected a production of 384,000 tonnes. Tapping of rubber plantations in Kerala, where about 92 per cent of rubber is produced, was severely hit by spread of epidemics like Chikungunya during the monsoon season.

The Rubber Board had initially projected a total output of 874,000 tonnes in FY08. By October, however, the scenario changed and, during winter, production picked up sharply. By December, the shortfall was contained to 6.4 per cent.

Negating the speculation over the stock position, the board has estimated a stock of 174,000 tonnes as on March 31, as against 165,190 tonnes on the corresponding day last year. The board also projected 180,000 tonnes stock as on 31st March of 2009, indicating a regular supply of NR during the whole of current financial year.

The imports of NR registered a marginal drop at 87,000 tonnes as against 89,699 tonnes in 2006-07 caused mainly by the steep rise in global prices. The exports fell by 5,545 tonnes at 51,000 tonnes during the year.

For the current year (FY09), the Rubber Board has projected a total production of 875,000 tonnes, up 6 per cent as compared with output in FY08. It has projected a 4.5 per cent rise in consumption at 899,000 tonnes.