India’s rubber output to be affected by floods in Kerala

rubber-treeWith the southern Indian state of Kerala affected by worst floods in a century, the rising water levels are likely to impact rubber and other plantations in the region.

Torrential rains in Kerala, India’s largest rubber producer and also a major tourism hub, have left over 30,000 people homeless, destroyed crops and disrupted air, rail and road traffic within the state for a week.

Rubber output in India, the world’s sixth biggest producer and second largest consumer, is likely to fall 13.5% from a year ago to 600,000 tonnes in the fiscal year to March 2019, according to N. Radhakrishnan, a dealer and former president of Cochin Rubber Merchants Association.

“In July rubber production was hit by rains. Now with the situation worsening in August, farmers again cannot tap rubber trees,” Rajiv Budhraja, director general of India’s Automotive Tyre Manufacturers’ Association, told Reuters.

With industry officials saying that a quick rebound in local rubber output is unlikely, tyre makers like MRF, JK Tyre, Apollo Tyres and Ceat will have to rely more on imports.

That could lift India’s imports to a record 500,000 tonnes due to high demand from tyre makers, Budhraja said.

Higher imports by India could support global rubber prices and lift shipments from major exporters like Thailand, Malaysia, Indonesia and Vietnam.