The global production of Natural Rubber (NR) in 2014 would be 12.1 million tonnes, according to estimates by the International Rubber Study Group (IRSG).
According to the same estimates, world consumption of NR in 2014 would be 11.9 million tonnes, with a surplus of 0.2 million tonnes.
Global production and consumption of NR in 2013 was 11.7 million and 11.3 million tonnes respectively, with a surplus of 0.4 million tones.
World production and consumption of NR grew by 3.1% and 2.5% respectively in 2013, compared to the previous year, said Sheela Thomas, Chairman, Rubber Board at the annual general meeting of the Board at Kottayam.
She said that domestic production of NR in 2014-15 is projected at 950,000 tonnes and consumption would be 1010,000 tonnes, with a deficit of 60,000 tonnes. Still, there would not be a shortage for the commodity as there would be a stock of 260,000 tonnes by the end of March 2015.
Production as well as consumption of rubber in India declined during the period from April 2013 to January 2014 as compared to the same period in the last fiscal. NR production was 9.4% lower as compared to the same period in 2012-2013.
Production in this period is provisionally estimated at 723,000 tonnes. The main reasons for decline in production are unusual and excessive rains, incidence of leaf diseases and low prices. However, the tapped area increased from 504,000 hectares in 2012-13 to 518,000 hectares in 2013-14, she added.
Consumption from April 2013 to January 2014 is provisionally estimated at 811,110 tonnes, which is 0.9% lower than that of 2012- 2013. Consumption in the tyre sector increased marginally by 0.8% whereas the non-tyre sector recorded a decline of 4.1%.
Import and export of NR amounted to 279,627 tonnes and 5357 tonnes respectively during the period. Around 71% of the import was in the form of block rubber. Tightness in NR supply in the domestic market and difference between the prices of RSS 4 in the domestic market and TSR -20 grade in the international market were the main reasons for the high volume of import.
The meeting demanded that in order to check the wide fluctuation in price, a permanent scheme for building up a strategic reserve of rubber in the country should be formulated under the auspices of the Rubber Board.
Business Standard
