Rubber output drops 26% in Aug; import continues to surge

The production between April and August, the first five months of the current financial year, saw a 4.5% rise to 277,000 tonnes from 265,000 tonnes in the same period of last year

The natural rubber market, hitherto marked by a fall in prices, also saw a steep drop in output for August.

Provisional data from the Rubber Board indicate a fall in output of 26 per cent in August, compared to the same month last year, 51,000 tonnes against 69,000 tonnes. This comes after a sharp rise in both June and July —the latter month had seen a 28 per cent rise to 59,000 tonnes.

The price of the RSS-4 variety is Rs 122/kg, the lowest in five years. As a result, tapping has almost stopped in the small and medium plantations. A K Johnson, a grower in Kottayam, told Business Standard the expense of tapping trees couldn't be met through sale of the rubber.

The production between April and August, the first five months of the current financial year, saw a 4.5 per cent rise in overall production, to 277,000 tonnes from 265,000 tonnes in the same period of last year. The Rubber Board estimates a total output of 820,000 tonnes in this financial year, compared to 835,000 tonnes in 2013-14.

Natural rubber consumption for April–August period was 424,300 tonnes as against 411,030 tonnes last year, a rise of 3.2 per cent. Almost half the consumption was through import — the price abroad has been lower by Rs 20-25/kg in recent months. The Board says import in April–August was 182,395 tonnes, against 133,801 tonnes in the same period of last year, a rise of 36 per cent.

With the lower prices abroad, export has been a casualty. It was zero in August (compared to 314 tones in August 2013), only 36 tonnes in July, 60 tonnes in June and 11 tonnes in May. The quality of India's sheet rubber is also considered poor by global standards.