The production of natural rubber in India fell by 21% year-on-year to 50,000 tonne in June, as per data compiled by Rubber Board. This drop in production of rubber has left the Indian tyre makers worried as it increases their dependence on imported rubber. Imports of the commodity rose 6% in the quarter to 106,294 tonne. The rubber production fell 14% in the quarter to June to 143,000 tonne, while consumption slipped just 1% both in the quarter and in the month of June.
The Tyre Manufacturers’ Association expects natural rubber output to remain sluggish in July too as rubber prices have fallen 6%. The price of block rubber, which is preferred by the importers, is as low as Rs 90 a kg in the international market.
The rubber imports have touched a new high at over 4 lakh tonne in the last fiscal year.