Rubber production increased 3.7 per cent during the 2010-11 fiscal, according to figures released by the Rubber Board. The major pick-up in production was noticed from December and it continued till March. Although unseasonal rain had hampered tapping operations initially, increased soil moisture ensured high productivity in later months, sources said. There was a marked improvement in production in February and March. Production fell in just a couple of months this year.

While rubber production for 2010-11 increased to 8,61,950 tonnes (8,31,400 tonnes), the growth was rapid in March when it increased by 7.4 per cent to 54,400 tonnes (50,650 tonnes).

Increase in production has been mainly because of higher price, increase in area under rain-guarding and spurt in area under tapping. As prices have continued to reign high, farmers have been tapping harder. Better prices have also prompted farmers to extend the area under rain-guarding, which would enable them to tap the trees even during the rainy season.

As the trees which were planted seven years ago have matured and become available for production, the tapped area increased by 9,000 hectares last year. The Association of Natural Rubber Producing Countries, which accounts for over 90 per cent of the global natural rubber output, has said more area will come under tapping from next year. As part of the cyclical spurt in rubber prices seven years ago, large areas were brought under cultivation, which will come under tapping from this year onwards.

flip side

On the negative side, the smart rally in rubber prices recently have resulted in farmers not cutting down old trees and re-planting them with new and high-yielding clones. This has resulted in India's rubber productivity falling in recent years. The consumption of natural rubber continues to be ahead of production at 9,49,205 tonnes during 2010-11. Consumption grew by two per cent over 2009-10 when it was 9,30,565 tonnes. Consumption in March 2011 registered a growth of 4.5 per cent to 81,500 tonnes. However, discounting any cause for concern, the Rubber Board figures say the stock of natural rubber available in the country has increased from 2,11,290 tonnes at the end of March 2010 to 2,77,095 tonnes at the end of March 2011.

Aravindan from Kottayam reports: Domestic natural rubber consumption also increased by 2.0 per cent during 2010-11. Growth in tyre production in the automotive sector increased 23 per cent during April 2010-February 2011. Export of tyres increased 20 per cent. However, truck and bus tyre exports declined 5 per cent. The projected natural rubber consumption for current fiscal is 9,77,000 tonnes.

The average price of RSS-4 in the domestic market in 2010-11 was lower than the price of RSS-3 in the international market by Rs 5.52 a kg. Tight supply, adverse weather, lower stocks, steady increase in demand, higher oil prices and speculative trade were the main reasons for high rubber prices in the international market.

According to the report of the International Rubber Study Group, the global natural rubber production-consumption balance in 2010 and 2011 shows deficit of 3,80,000 tonnes and 2,34,000 tonnes, said Ms Sheela Thomas, Chairman, Rubber Board, at the 165th meeting of the board

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