Natural rubber output up 2.9% in May

The gap between the production and consumption of natural rubber (NR) widened further in spite of the increase in production during April-May period of the current financial year.

While 9.5 per cent growth was recorded in consumption, production recorded an increase of 2.9 per cent, leaving a gap of 50,400 tonnes in the domestic production-consumption pattern of NR. In May, consumption grew 10.9 per cent. During April-May, total NR production increased to 108,100 tonnes while consumption edged up to 158,500 tonnes. It was 10 6,500 tonnes and 143,000 tonnes respectively in the same period of the last financial year.

A sharp increase in consumption was the main reason behind the widening supply-demand gap in the country causing a much sharper increase in prices.

According to the Rubber Board, the increase in consumption was mainly due to an increase in the demand from the automobile and tyre sector as well as the non-tyre sector. Rubber board data showed that early summer showers reduced the tapping period during May, which had hit the production badly.

Import fell 26.1 per cent in April-May to 22,363 tonnes as against 24,743 tonnes in the same period last year. Higher price tags in global markets caused this sharp fall in imports. Though volume-wise exports were meagre. Export of NR registered 220.9 per cent increase at 2,728 tonnes as against 818 tonnes last year.

According to the data by the Rubber Board, total stock in the country by the end of May was 218,036 tonnes as against 186,170 tonnes in May 2009.