India attempts to revive its dwindling rubber industry

  • 12/06/2023
  • admin

For more than 30 years Babu Joseph has been tending rubber trees on his small farm in the southern Indian state of Kerala.

Kerala used to be home to thousands of producers like him, who made a living extracting latex from small plantations of rubber trees, but over the last decade those numbers have dwindled.

"Rubber was once the state's prime cash crop but over the past decade, prices have plunged," he explains.

Tapping rubber trees is a labour-intensive activity. In the evening or early morning workers slice through the bark with cuts deep enough to allow the latex to run out and be collected in buckets - a process that is repeated on each tree every few days.

It requires some skill to make the incisions to the correct depth without damaging the tree.

Paying workers to do that amid falling prices has made plantations an unattractive business.

"Poor returns and high labour costs have forced many of the growers like me to give up their rubber plantations," says Mr Joseph.

India's rubber production peaked in 2013 at 913,700 tonnes, according to figures from the country's Rubber Board.

Production then fell dramatically to 562,000 tonnes in 2016. Since then it has seen a modest recovery but remains well below the 2013 peak.

The boom years were fuelled by favourable weather and the rising price of natural rubber, which peaked on the international markets at 540 cents/kg in 2011.

But as Mr Joseph noted, prices have plunged - trading this year at 130 cents/kg.

While domestic production has stuttered, demand for natural rubber in India has soared. Around 70% of India's natural rubber is consumed by the tyre industry, which has grown rapidly in recent years and is forecast to grow further.

"Consumption growth is expected to race ahead of production growth," says Rajiv Budhraja, director general of the Automotive Tyre Manufacturers Association (ATMA).

"The wide gap between natural rubber production and consumption... is a major concern for the Indian rubber goods sector," he adds.

He says tyre manufacturers are not happy to rely on imports for such a crucial material and also want to support the government's Make In India initiative.

https://www.msn.com/en-xl/news/other/india-attempts-to-revive-its-dwindling-rubber-industry/ar-AA1cjjFO

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