The Hindu Business Line : Kerala needs processors to prop up rubber sector

KERALA, which accounts for as much as 84 per cent of the total area under rubber cultivation in the country, continues to sit and watch as most of its produce leave the shores in order to be processed and marketed.

The country's rubber industry, comprising 29 tyre manufacturing units, 250 medium-scale and 5,500 small-scale units, offers a range of 35,000 diversified products. Only, 95 per cent of the industry is situated outside the State that produces the most of the basic raw material.

The State Government is aware of the dichotomy and admits as much in the latest Economic Review. Steps have to be taken to attract rubber manufacturers and processors to the State, the Review says.

Especially since the rich experience in the manufacture of such a diversified range of products and the cheap manpower available are being considered as the relative advantages that India possesses vis-à-vis potential rivals.

India is the third largest producer of natural rubber, with a share of 9 per cent in the world output after Thailand and Indonesia, and has relegated Malaysia to the fourth position. The country's production was 6.49 lakh metric tonnes in 2002-03, which was 2.9 per cent higher than the previous year. At the same time, the country is the fourth largest consumer of natural rubber after China, the US and Japan.

The annual growth rate in production in 2001-02 was the lowest (0.08 per cent) after 1982-83, while annual growth rate of consumption was the lowest in 2000-01 after 1980-81, which recovered to 1.07 per cent in 2001-02 and to 9 per cent in 2002-03. As already stated, Kerala accounts for 84 per cent of the area under rubber in the country. The coverage in 2002-03 was 4.76 lakh hectares, higher by 1008 hectares over the previous year.

The production of natural rubber in the State during the year was 5.95 lakh tonnes. The increase in production registered during the year was 2.5 per cent over that of the previous year.

Being predominantly a small-holder plantation crop in the State, the average size of the holding is as low as 0.50 hectares. The increasing trend in productivity continued during 2002-03. It was 1190 kg per hectare in 1998-99, which rose to 1250 kg during 2002-03. In terms of tapping area, productivity recorded was 1635 kg per hectare in 2002-03.

The domestic prices of natural rubber may have been more or less comparable to international prices during 2002-03, but, to the chagrin of producers, the industrial sector still resorted to imports of the commodity in bulk quantities.