Natural rubber output in India, which is the world's fourth largest producer, is expected to increase by nine per cent in the current year to 8.95 lakh tonnes over 2009, brokerage firm Karvy Comtrade has said.
"For 2010, India's natural rubber production is projected to increase by nine per cent to 8.95 lakh tonnes. Consumption is likely to increase by seven per cent to 9.67 lakh tonnes year-on-year," the firm said in its seasonal outlook.
India, which produced 8.2 lakh tonnes and consumed 9.04 lakh tonnes rubber in 2009, is the second highest consumer of rubber in the world after China.
Karvy Comtrade said that the price of natural rubber was expected to show a bullish trend in the short to medium term due to global factors like tight supply situation.
High import duty and ageing of rubber trees domestically could also impact the prices. Total global production is estimated to increase by 6.2 per cent to around 9.36 MT and in 2010 over 2009, it said.
Thailand, Indonesia and Malaysia are the world's top three natural rubber producing countries in the world. India is the fourth largest rubber producer, with Kerala contributing around 91 per cent of its total production.