The Hindu Business Line : Rubber seen firm on higher consumption

DOMESTIC and global rubber consumption is increasing at a faster clip than the production and, therefore, there is possibility that the present uptrend in prices would continue, said Mr Sajen Peter, Chairman, Rubber Board.

Inaugurating the 155th Rubber Board meeting here, he said the rubber production in the country was estimated to increase by 4 per cent over last year and it would touch 7.8 lakh tonnes. Registering a growth of 5.8 per cent, consumption would rise to 7.99 lakh tonnes.

Not only is tyre export touching new highs, tyre consumption is also increasing correspondingly on higher economic growth.

In major rubber-producing countries such as Malaysia, Thailand, and Indonesia factors are not so favourable for rubber production. But requirements for natural rubber are rising faster than synthetic rubber.

According to an assessment of International Rubber Study Group, natural rubber would be in short supply globally till 2020.

Situation is now favourable for rubber export as the international price remains above domestic price. As against the expectation of 40,000 tonnes, exports till December 24 exceeded 47,000 tonnes.

Mr Peter also explained the progress made by the Rubber Board in various sectors. The Government had approved a rubber development programme for Rs 159 crore. Accordingly, the board has received applications for planting subsidy and steps are in progress to disburse the money to the growers.

The board has elected Mr Kanam Rajendran, Ex-MLA, as the new Vice-Chairman.