Natural rubber imports to gain 67%

India may import 67 per cent more natural rubber this year as demand for the raw material climbs on sustained economic growth, an industry group forecasts.

The country may buy a net 75,000 tonnes from overseas, compared with 45,000 tonnes last year, M F Vohra, senior vice-president at the All India Rubber Industries Association, said. The gain may come even as India's natural-rubber output rises as much as 5 per cent to 875,000 tonnes this year, he said.

The economy in India, the world's fifth-largest rubber user, has expanded at an average 8.6 per cent since 2003, boosting demand for tires and gloves. Thailand, Indonesia and Malaysia are the three biggest rubber producers, while India is fourth. "Given the growth we should be able to overtake Japan and South Korea to become the world's No. 3 consumer in the next five years,'' Vohra said yesterday from Mumbai by phone. China and European Union are the two largest consumers.

Natural-rubber futures on the Tokyo Commodity Exchange, the global benchmark, have advanced 94 per cent in the past two years on rising demand from China and India. The contract for October delivery, the most active, gained 1.4 yen, or 0.5 per cent, to 274.2 yen ($2.28) a kg at 9:40am Tokyo time today.

Global demand for rubber, and the challenges of boosting supply are the principal topics that will be addressed today and tomorrow at the World Rubber Summit 2007 in Bangkok.