Demand increased sharply from the automobile industry and medical equipment manufacturing, while a shortage of shipping containers made it difficult to import rubber from India.
A recent report from the Import-Export Department said that according to the Indian Rubber Council, the country is facing a shortage of natural rubber due to heavy rains reducing production. Demand increased sharply from the automobile industry and medical equipment manufacturing, while a shortage of shipping containers made it difficult to import rubber from India.
The Indian Rubber Council called on farmers to exploit rubber regularly and member companies to increase production to ensure sufficient supply for the domestic market. The Indian government also approved a support program of 9.9 billion Rupees to promote sustainable growth for the country's natural rubber industry.
In the 2023/2024 crop year, India's rubber output will reach 857,000 tons, much lower than consumption of 1.4 million tons. During this period, India's imports reached nearly 500,000 tons, while exports were nearly 4,200 tons.
Currently, India's automobile and medical equipment manufacturing industries are recording positive growth, leading to the demand for natural rubber for tire products and medical equipment.
Normally, Indian manufacturers will boost rubber imports before the market enters the rainy season, making rubber exploitation difficult. But this year, import activities are facing many difficulties due to seaport congestion and container shortages.
Currently, some international organizations have made preliminary assessments that the decline in domestic rubber output in India will make the global supply shortage worse, helping rubber prices stay high in the future. next time.
According to the Indian Automobile Tire Manufacturers Association (ATMA), in July 2024, the imbalance between supply and demand of natural rubber in India is increasing.
The scarcity of natural rubber has affected small and medium-sized rubber companies, as well as large tire manufacturers.
Due to the scarce supply of natural rubber, output at some rubber tire factories of ATMA member companies decreased by more than 10% in July.
The shortage in the natural rubber market has forced Indian tire companies to reallocate imported natural rubber among different factories to maintain operations. The Indian government's restriction on natural rubber imports has caused rubber tire companies to face many difficulties.
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