Serious drop in the production of natural rubber (NR) during the peak season (Sept– Feb) of the current financial year has raised concern over its domestic availability.
While the the peak season production dropped to 518,000 tonne as against 546,500 tonne last year, consumption was up 6,000 tonnes during this period.
The extent of drop in the production can be assessed from the fact that the Rubber Board had scaled down the original production estimate twice during the current fiscal from 960,000 tonne to 870,000 tonne and further down to 850,000 tonne.
However, even the revised estimate of 850,000 tonne made in February is not likely to be achieved as the actual production during April-Feb period was just 780,000 tonne. In the Apr-Feb period of the fiscal 2012-13, the production was 860,000 tonne.
So, according to the industry estimates, total production may confine to 820,000 -830,000 tonne.
The recent data released by the Association of Natural Rubber Producing Countries (ANRPC) showed India had slipped down to the fifth position in terms of production, below Vietnam and China, in 2013.
India occupied fourth place in 2012 after Thailand, Indonesia and Malaysia. Its position would be much weaker in 2013-14, thanks to the serious drop in production during the peak season.
Tyre industry has expressed concern over chronic shortage in domestic availability of natural rubber stretching throughout the current fiscal.
“In the past, natural rubber availability during the peak production months stretching over six months of Sept-Feb was not a major concern. However, during the current fiscal, domestic availability, even during the peak production months has been erratic and uncertain, said Rajiv Budhraja,DG, Automotive Tyre Manufacturers’ Association (ATMA).
Even as the peak production season has just concluded, the market availability of rubber has been extremely tight leaving tyre companies with no other option but to import.Going forward, the situation is likely to only worsen, he added.
However, production is likely to pick up by June in tandem with the arrival of monsoon.
Source: Business Standard
Published: 13 Mar 2014