Tyre Industry

Good News For Tyre Industry: 10 Percent Growth In Rubber Output

Tyre Industry 10 Percent Growth

The Rubber Board of India has projected a growth of 10 percent in natural rubber production due to the growth in the tappable area in the country which stands at 7,50,000 tonnes (2019-2020). As per K.N. Raghavan, Chairman and Executive Director, the tappable area has gone up to 6,65,000 hectares in 2019-2020 as against 6,40,000 ha in 2018-2019. This increase is due to the increased production and continuation of the rubber production incentive scheme in the leading rubber producing state of Kerala in 2019-2020.

Mr. Raghavan also told that the natural rubber consumption projected for 2019-2020 is 12,70,000 tonnes. This will be supported by anti-dumping duty on tyres, high import duty and economic growth. The global natural rubber production, as per the Association of Natural Rubber Producing Countries (ANRPC), is forecast to be around 14.08 million tonnes. In addition, the world production of natural rubber also increased by 2.4 percent and consumption increased by 4.6 percent in 2018, as per the report of International Rubber Study Group (IRSG).

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Rubber production decreased in major rubber producing countries such as Indonesia, Sri Lanka, India and Malaysia in 2018. But it was balanced by the strong output expansion in Cambodia, Ivory Coast, Thailand and Myanmar. However, the global rubber exports growth was flat in 2018 because of the retardation in the pace of growth in import demand, primarily from China. In the current year, the production and consumption are expected to be around 14.26 and 14.23 million tonnes respectively with a surplus of 30,000 tonnes.

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