The Rubber Board has projected an increase of 8.45 per cent in the country’s natural rubber (NR) output for the current financial year. According to board’s projection, the total production this year would be 901,680 tonnes compared with 831,400 tonnes last year.
This will be the first time that the natural rubber production will cross the 900,000-tonne mark.
The incremental increase for FY11 will be 70,280 tonnes as against a fall of 33,100 tonnes in 2009-10. The board estimates a marginally lower growth in the case of consumption, as it estimates total consumption of 986,980 tonnes for the current financial year.
The consumption is projected to grow by 56,395 tonnes in the current year. In 2009-10, consumption increased 6.8 per cent at 930,585 tonnes as against 871,720 tonnes in 2008-09.
Meanwhile, Automotive Tyre Manufacturers Association (Atma) has questioned the rationale behind projections.
An analysis of Rubber Board Data shows an average incremental growth in production of only 21,000 tonnes a year over the last 10 years (FY01 to FY10).
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A study of the Association of Natural Rubber Producing Countries (ANRPC) put the projected production of NR in India in the year 2010 at 853,000 tonnes, the same as production in the year 2006.
“With new capacities being put up by tyre manufacturers in the country to meet the rising demand from vehicle makers, the NR consumption will grow spirally. The decrease in incremental consumption as estimated by the board is most unfortunate and belie the growing requirements from consuming interests”, said Neeraj Kanwar, chairman, Atma.