Imports of natural rubber (NR) into the country is much higher than the production-consumption gap and indicates that tyre manufactures apparently are holding inventories, making use of the prevailing low prices, officials of the United Planters’ Association of Southern India (UPASI) said.
Such a high dependence on imports on a key commodity like rubber is against the Make in India agenda championed by the government, UPASI president N Dharmaraj said and sought urgent intervention by the government to save the Indian rubber plantation industry.
He said that the consuming industry has built additional capacity propelled by attractive margins, and with production dwindling, these capacities will continue to be underutilised. “Since 2011-12, NR production and productivity has been steadily coming down, while the imports have been mounting and consumption has marginally gone up,” Dharmaraj said.
“Low prices have brought misery to the 1.2 million growers who are steadily abandoning tapping and the tapping area on the total area has touched an ominous level of 56%,” Dharmaraj said.
