Rubber production estimated to rise 3.5%

Consumption to rise 5%; Output to beat consumption

The Rubber Board has projected natural rubber production at 8,31,000 tonne in the current financial year, a growth of 3.5 per cent over last fiscal. The board has also projected total consumption to the tune of 8,41,000 tonne, 5 per cent higher than last year.

Total rubber production during 2005-06 was 8,03,000 tonne, an all-time high. It had grown 7.1 per cent over the previous year's 7,49,000 tonne. Consumption, too, had increased by 6.1 per cent at 8,01,000 tonne in the last financial year.

This will be the first time in the last five years that total production is expected to be more than consumption.

According to the board's estimates total export has surpassed the target by around 13,000 tonne at 68,446 tonne. The board had fixed 55,000 tonne target for both import and export, but actual import in 2005-06 was 44,672 tonne.

Though India had a command over the global market during the last financial year owing to a clear price advantage, the country could not surpass the all-time high export of 75,960 tonne achieved during 2003-04. That had been achieved mainly due to the advantage of the export subsidy scheme in that year.

However, compared to 2004-05, import had decreased drastically in 2005-06. Import in 2004-05 was 68,718 tonne owing to higher price tags in other producing nations.

The Rubber Board has fixed a target of 50,000 tonne for export and 45,000 tonne for import in 2006-07. For the first time total production is expected to cross 8 lakh tonne, with average prices increasing by 50-60 per cent during the last financial year.

It happened mainly because of aggressive production during February and March which is normally considered as offseason. Normally production in these months is around 40,000-45,000 tonne. As per estimates, production during the period this year is expected to cross 60,000 tonne. As on March 31 total stock of rubber in the country was 93,000 tonne.