India's rubber supply deficit to widen on demand: Board

India’s deficit in natural rubber supply will widen as car sales and investments in tires expand, boosting demand in the world’s second-largest consumer, according to the Rubber Board of India.

The deficit, currently around 75,000 metric tonnes, may widen in the short term if investments in tire projects proceed as planned, Sheela Thomas, Rubber Board of India’s chairman, said.

Annual production growth is estimated at 2.5 to 3 per cent during the next five years, while consumption may expand 2.5 to 3.5 per cent. Output in the current crop year ending March 2012 is projected to total 865,000 tonnes, she said on the sidelines of the Global Rubber Conference in Phnom Penh.