Area under rubber plantation now 850,000 ha during 2022-23
RB PR
NATIONAL, July 10, 2024: M Vasanthagesan, Executive Director, Rubber Board urges rubber growers to concentrate more on sheet processing than selling field latex. Over the years, the consumption of natural rubber in the form of Ribbed Smoked Sheets (RSS grades) has been on the rise, with an increase of 8.34 per cent and 5.37 per cent between 2022-23 and 2023-24 respectively. Domestic natural rubber (NR) consumption during 2023-24 was 14,16,000 tonnes against 13,50,000 tonnes during 2022-23, up by 4.9 per cent from the previous year.
The auto tyre sector registered a positive growth of 0.4 per cent during 2023-24. At the same time, the general rubber goods sector recorded 15.4 per cent growth during 2023-24. Auto-tyre manufacturing sector accounted for 67.3 per cent of the total quantity of NR consumed in the country during 2023-24. Out of the total NR consumed, 41.6 per cent were of RSS grades and 7.7 per cent latex concentrates in 2023-24.
Indian economic growth is poised to increase at the rate of 6.5 per cent, as published by the IMF. Infrastructural development, especially in surface transport, will be a key focus area of the Government which could lead to an increase in demand for dry rubber products, especially in the automobile sector.
The total area under rubber plantation in the country is estimated to be increased by 889,000 ha during 2023-24 from 850,000 ha during 2022-23. An increase in tappable area of 8500 ha in 2023-24 against 2022-23 signals more rubber availability in the current year.
The projected production for the year 2024-25 is expected to touch 8,75,000 metric tonnes on account of anticipating rainguarding more areas in northern Kerala and NE region owing to the improved weather conditions and measures taken for controlling diseases complemented with the training imparted by the National Institute for Rubber Training with special focus in the NE region. Moreover, rubber prices crossed rupees 200 per kilogram after a long gap of 12 years, which instilled confidence in rubber growers for rubber cultivation.
Out of the overall consumption of 14,16,000 metric tonnes of NR during 2023-24, sheet rubber consumption is 5,89,345 metric tonnes, accounting for 41.6 per cent, and the latex consumption is 1,08,405 metric tonnes, accounting for 7.7 per cent of the total consumption. This implies that the industry has more requirements for RSS than other grades of rubber. Domestically produced RSS rubber grades are in good demand for tyres and other product manufacturers, indicating their quality and market acceptability.
Indian growers are currently securing 90-95 per cent of the terminal market share due to sheet making. By processing sheet rubber, growers can potentially earn higher profits in the current market scenario. For instance, the price of RSS 1X grade is currently ranging from rupees 245 to 250 per kilogram, significantly higher than the prices of other RSS grades. This difference in prices underscores the potential for increased profits in focusing on RSS grades.
Minimizing the high dependence on imports and achieving self-reliance is a goal that rubber growers can actively contribute to by tapping all untapped plantations. The import of natural rubber by India over the years has been significant, standing at 546,369, 528,677 and 4,92,682 metric tonnes during 2021-22, 2022-23 and 2023-24 respectively. This has resulted in a substantial loss of foreign exchange for the nation. By focusing on increasing domestic production, rubber growers can play a crucial role in achieving self-reliance in rubber production.
From April to May 2024, total rubber production in India amounted to 81000 metric tonnes, whereas the total production during the same period in 2023 was 82000 metric tonnes. The production loss was due to early rains in May.
However, the Board is fully supportive and expects the supply conditions to improve in the coming days. Because of the above, the Board reiterates its support and guidance, emphasizing the potential of tapping all untapped areas and focusing more on processing rubber as RSS grades.
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