The Hindu Business Line : Rubber prices seen rising further

The Union Minister of State for Commerce and Industry, Mr E.V.K.S. Elangovan (right), the State Fisheries Minister, Mr Dominic Presentation (centre), and Mr P.C. Thomas, MP, at the opening ceremony of the International Natural Rubber Conference organised by the Rubber Research Institute of India in Kochi on Sunday. — K.K. Mustafah

Kochi , Nov. 6

NATURAL rubber prices are likely to move up further in the future, as the gap between production and consumption will widen, according to Dr Hidde P. Smit, Secretary-General of the International Rubber Study Group (IRSG).

Delivering a keynote speech at the International Natural Rubber Conference, organised by the Rubber Research Institute of India (RRII) here, Dr Smit said the world would require about 12-13 million tonnes of natural rubber to meet the demand, but production was likely to be around 10-10.5 million tonnes only.

Dr Smit stopped short of forecasting that the natural rubber price would cross $2 a kg, but he said prices are likely to go up to that level. He had earlier predicted that natural rubber prices would touch $2 a kg.

Already natural rubber prices are ruling at over $1.5 in international markets.

Dr Smit said there were no real signs of production picking up in India in the coming years as new plantations of about 5,000 hectares a year did not result in a substantive increase in the plantation area. This is because replantation activities remain at 90 per cent of the total area.

"India needs to at least triple the new plantations by 2020," he said. "I do not foresee any real growth in production and expect 8,50,000 to 9,00,000 tonnes (annually)."

Similar is the case with major rubber producing countries such as Thailand and Malaysia. On the other hand, consumption growth will be fuelled by strong demand for tyres in China and India. This trend would keep natural rubber prices at a higher level.

Earlier, the Union Minister of State for Commerce and Industry, Mr E.V.K.S. Elangovan, inaugurated the conference, organised as part of RRII's golden jubilee celebrations.

Around 600 people, including scientists from across the world are participating in the three-day conference. More than 100 papers are expected to be presented during the conference.

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