India is experiencing a significant shortage of Natural Rubber , with domestic production falling short of demand by approximately 5.5 lakh tonnes.
Rubber:
Rubber is an elastic material made from polymers of isoprene and other compounds.
Natural Rubber: Obtained from latex produced by plants, crucial for various industries.
Synthetic Rubber: Produced chemically.
Requires tropical climate (20°-35°C), loamy or laterite soil, over 200 cm rainfall, and skilled labour.
Production and Trade:
India is the third-largest producer and fourth-largest consumer of natural rubber globally.
Kerala and Tripura are the primary producers.
In 2022-23, India exported 3,700 tonnes and imported 5,28,677 tonnes of NR.
Major import sources: Indonesia, Thailand, China, South Korea, Japan.
Causes of Shortage:
Demand-Supply Gap:
Natural Rubber production increased from 8.39 lakh tonnes in 2022-23 to 8.57 lakh tonnes in 2023-24.
Consumption surged from 13.5 lakh tonnes to 14.16 lakh tonnes.
Tyre industry consumes 70% of Natural Rubber; non-tyre sectors (30%) are predominantly small and micro enterprises.
Geopolitical Situation:
China is stockpiling Natural Rubber, and Bangladesh’s political instability has disrupted supplies.
Monsoon Impact:
Heavy monsoons affect tapping activities, leading to uncertain Natural Rubber availability.
Import Dependence:
India relies on imports from countries like Vietnam and Indonesia due to insufficient domestic production.
High Import Duty:
Natural Rubber imports face a 25% customs duty or Rs 30 per kg, whichever is higher.
Latex rubber (used for gloves and balloons) faces a total 75% duty, creating an inverted duty structure that favors imports over local manufacturing.
Government Initiatives:
Sustainable & Inclusive Development of Natural Rubber Sector (SIDNRS)
Rubber Plantation Development Scheme
Rubber Group Planting Scheme
100% Foreign Direct Investment (FDI) allowed in rubber plantations
National Rubber Policy 2019
Recommendations to Increase Production:
Enhance subsidies and financial assistance for new plantings and replanting under the National Rubber Policy.
Improve training programs for better cultivation techniques and productivity.
Increase funding for research on high-yielding and disease-resistant rubber varieties.
Foster public-private partnerships for investing in plantations and processing infrastructure.
India’s rubber industry is crucial yet faces persistent shortages, leading to high import costs. To address this, boosting domestic production, improving supply chains, and leveraging supportive policies like the National Rubber Policy 2019 are essential.