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India’s natural rubber production drops 33 percent in January

11 Feb 2015 Evaluate

India’s natural rubber production dropped 33% in January, the highest ever monthly decrease in recent times, this may lead to supply crisis in India. The monthly output was only 60,000 tonnes against 89,000 tonnes in January 2014. Fall in output is mainly on stoppage of tapping in most plantations across Kerala and on farmers shifting to other crops. A drop in production had a cumulative effect this financial year as April 2014 recorded a 3.8% decrease.

According to the current trend, total annual output in 2014-15 will be confined to 650,000 tonnes. During 2013-14, total production was 844,000 tonnes and in the preceding financial year, it was 913,700 tonnes. According to the earlier estimates of Rubber Board, this financial year’s turnout should be 8,00,000 tonnes.

With the demand-supply gap being 3,00,000 tonnes at present, it might cross 400,000 tonnes by March; the only alternative to the supply crisis seems to be import. This situation makes India depend more on imports as consumption increases every month.

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