The Rubber Board is eyeing non-traditional areas like Karnataka, Andhra Pradesh and a few north eastern states for expanding the area under cultivation.
Speaking at Upasi’s 115th annual conference, Sajen Peter, chairman, Rubber Board, said the board is facing limitations on further growth in traditional growing areas. Hence, new areas like Karnataka, Andhra Pradesh and some states in the north east are being explored.
“The supply of NR (natural rubber) is to witness tight supply concern and is likely to persist for a few more months. NR prices are expected to remain in a comfortable zone in the near future despite a projected moderation in global economic growth, but however, prices can be highly volatile to seasonal, currency, speculative and other factors,” he added.
NR production in India declined from 8.53 lakh tones in 2006-07 to 8.25 lakh tones in 2007-08, a decline of 0.28 lakh tones.
Lower NR production was on account of the adverse climatic condition that was prevalent in the main growing areas like Kerala and the situation got further worsened with widespread viral disease in the state, which also had affected the tappers.
However, the latest trend suggests that there is significant increase in India production to an extent of 30.6 per cent, while global production also reported marginal increase of 1.1 per cent.
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In the current year, domestic NR prices were above the global market prices during the last week of April and first-week of May 2008. Thereafter the global NR prices ruled above the Indian prices until the last week of July.
“During the last few weeks, the domestic rubber prices have been above the global prices,” said Peter.
As per the Upasi statistics, the latest trend in rubber prices during January-August 2008 indicates that the global prices of RSS III have increased by 28.1 per cent while domestic prices (RSS IV) increased by 30.4 per cent).
The trend in prices suggests that NR consumption continues to increase in India (6.6 per cent) and also across the world (5.8 per cent).
NR consumption increased by 0.41 lakh tones at 8.61 lakh tones in 2007-08 as compared to 8.20 lakh tones recorded in 2006-07. In India, NR accounts for a major share in gross elastomer consumption, in contrast to the global consumption pattern.
The share of elastomer consumption in India was 75 per cent in 2006 as compared to global share of 43 per cent.
The country is facing the impact of slowdown in planting from 1997 to 2003 and this is expected to reflect in the forthcoming years. This is likely to affect the supply of NR.
Replanting is projected to increase in the coming years because of the boom in planting in major rubber producing countries since late 1970s.