Rubber Board to encourage block production

The Rubber Board has received approval to encourage block rubber production, which is expected to mark a new channel for rubber processing in the domestic sector.

At present, block rubber production in India is only in meagre quantities, that, too, processed from field coagulum (scrap rubber). However, in South-East Asian and other natural rubber producing countries, it is processed from field coagulum or latex, or from a mix of both to ensure better grades.

With the sanction received from the Centre for the pilot scheme, the Board anticipates a remarkable shift in rubber processing both in the domestic market as well as in meeting future requirements in the international market.

Senior officials in the Board told BusinessLine that the Commerce Ministry has sanctioned ₹25.74 crore to encourage block rubber production, which includes a subsidy of ₹10/kg for latex to small growers.

The pilot scheme envisages a production of around 14,000 tonnes of latex coagulum (LC)-based block rubber for two years.

The Board is betting big on the increased usage of block rubber, especially by product manufacturers, due to its lower price, more consistency in properties, easy handling and longer shelf life.

It is estimated that the tyre sector could use block rubber up to 70 per cent of its natural rubber requirements. Today, 80 per cent of the imported rubber by tyre companies constitutes block rubber and out of the 4.5 lakh tonnes of rubber imports last year, block rubber consists of three lakh tonnes. The scheme will be implemented through factories of RubberMark, Kavanar Latex and Pala Marketing Society. The Board has invited representatives of these factories for discussions to chalk out modalities of implementation.

The Board will provide technical and financial assistance to growers besides assuring a higher price by direct procurement of LC through depots of cooperatives and rubber producing societies.

In India, RSS grade accounts for a major share of processed rubber, while block rubber is the major processed form of rubber elsewhere. India has preferred sheet rubber production as it ensures a higher farm gate price as processing is undertaken at the farm itself.

The prices of sheet rubber are universally higher as compared to other forms of rubber and stock holding at the grower level is undertaken at the farm itself.

However, South-East Asian natural rubber producing countries favour commercialisation of block rubber, especially due to labour shortage, as well as their requirement to develop a processed form of rubber with consistent technical specification to compete with synthetic rubber.

According to Rajiv Budhraja, Director-General, Automotive Tyre Manufacturers Association (ATMA), the association has been constantly in touch with the Rubber Board to initiate measures for quality improvement.

The Domestic block rubber is made from aged scrap, while imported block rubber is manufactured in large factories from fresh cup lumps.

While global production of block rubber is approximately 80 per cent, in India it is a mere 15 per cent, he said.

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