India’s natural rubber output could jump 14.5 % in 2015/16 fiscal year that started on April 1 to 750,000 tonnes, while consumption is likely to rise 4.1 % to a record 1.06 million tonnes, said an official with state-run Rubber Board.
The rise in production is not sufficient to fulfil domestic demand and tyre makers will maintain imports in 2015/16 as prices are ruling lower in the world market, said the official, who is not authorized to speak to media.
“Lower prices and bad weather contributed in pulling down production last year. This year we are expecting normal weather,” the official told Reuters on Thursday. – Reuters
India, which buys most of its natural rubber from Thailand, Malaysia, Indonesia and Vietnam, is struggling to fulfil rising demand from tyre makers. Its production in 2014/15 fell 15.4 % from a year ago.
In 2014/15 the world’s second-biggest natural rubber consumer’s imports rose 15.6 % to a record 416,554 tonnes, the official said.
Rubber in India is available at US$2.13 per kg, compared with US$1.41 in Malaysia, prompting tyre makers such as CEAT Ltd, Apollo Tyres, JK Tyre and Industries, MRF Ltd and Balkrishna Industries to increase imports.