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Recovery in rubber industry's growth is imminent:Sheela Thomas

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Press Trust of India Kochi
Last Updated : Feb 20 2014 | 4:42 PM IST
Current low rubber prices and declining demand for its products is a matter of concern but growth of rubber industry has always been cyclical and recovery is "imminent", Rubber Board Chairman Sheela Thomas said today.
"Every industry passes through perils and successes; and booms and troughs. This is true of rubber sector, the growth of which is strongly correlated to macroeconomic trends," Thomas said in addressing the inaugural Indian Rubber Meet, which began here.
Natural rubber production sector, dominated by marginal and small holdings, is facing depressed prices and rubber products manufacturing sector is beset with recessionary trends.
"There are concerns in all segments of rubber sector on the current situation of low prices for rubber and declining demand for rubber products. But history teaches us that growth of rubber industry has always been cyclical and a recovery is imminent," she said.
The meet will also facilitate deliberations as to how to confront the emerging challenges in rubber sector and how to tap the hitherto unexplored opportunities.
India is the second largest producer and fourth largest consumer of natural rubber. The country produces and consumes around 0.9 million tonnes of natural rubber. The synthetic rubber production and consumption in the country is around 1.10 lakh tonnes (LT) and 4.44 LT, respectively.

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Annual turnover of rubber products manufacturing industry is around USD 11 billion and export has crossed USD 2,700 million.
Vital strength of Indian rubber industry is the synergy from the co-existence of a well established rubber production sector and a fast growing rubber products manufacturing sector.
The event is being organised by all stakeholders associations representing different segments of Indian rubber industry, major firms, media and Rubber board.
Vikram Shreekant Kirloskar, President of the Society of Indian Automobile Manufacturers (SIAM), who was chief guest at the inaugural function, said the automobile industry was going through a difficult phase now and the situation was expected to improve by next year.
Finance Minister P Chidambaram's budget announcement of reducing excise duty on automobiles and the recently held Auto show at Delhi will help the sector to improve, he said.
"We have to grow as a country. We cannot just grow on IT. We have to be cost and quality competitive," Kirloskar, who is also the Vice-chairman of Toyota Kirloskar Motor Pvt Ltd, said.
Invited talks on 'Global Economic Outlook and Future of Commodities', Short and Medium term Outlook on Global Rubber Industry', was also held.

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First Published: Feb 20 2014 | 4:42 PM IST

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