India increases rubber production by 8.6 percent in 2024

Chennai, India – The Times of India reports that India’s natural rubber (NR) production has grown 8.6% from 7.89 lakh ton in FY21-22 to 8.57 lakh ton in FY23-24 with industry estimating it will hit 8.82 lakh ton in FY24-25.

Shashi Singh, president, All India Rubber Industry Association (AIRIA), said: “By 2030, NR production in India should hit one million ton, but consumption has been growing significantly too. Currently NR consumption in India is 14.16 lakh ton which is estimated to go up by 5% and close at 14.86 lakh ton by end of FY24-25.”

The gap of around 5.5 lakh ton is mostly made up of imported NR and synthetic rubber (SR).

“NR production increase takes at least 7 years, and the govt has been promoting plantations in the north east, particularly Tripura with a target to becoming self-sufficient by 2047,” said Singh. However, domestic NR is both more expensive and slightly below par in quality to imported varieties.

While imported NR costs around Rs 200 per kg, domestic is currently at Rs 210 to Rs 220 per kg which had, during the monsoon season, gone up to Rs 245 per kg, he said.

There’s 25% customs duty or Rs 30 per kg (whichever is higher) on imported NR which costs around Rs 200 per kg so the duty impact is Rs 50, he explained.

India produces 5.46 lakh ton of synthetic rubber even though domestic consumption is 7.84 lakh ton. “Total rubber production in India is 15.58 lakh ton including 8.57 lakh ton of NR, 5.46 lakh ton of SR and 1.5 lakh ton of reclaimed rubber,” said Singh.

Currently, India produces both butyl rubber and butadiene rubber or NBR. “The govt has recently imposed anti-dumping duty on import of butyl rubber and now there is a proposal to impose anti-dumping duty on NBR imports too which will skew the supply,” said Singh.